Question: Analyze the Cash Flow to Debt Ratio for 2023 and its implications for the company's debt management.

The Cash Flow to Debt Ratio is calculated by dividing operating cash flow by total debt. For 2023, the operating cash flow is $3,458 million, and total debt (sum of long-term debt and current portion of operating lease liabilities) is $8,547 million. This gives a Cash Flow to Debt Ratio of approximately 0.40. This ratio indicates that the company generates 40% of its total debt in cash from its operations. A higher ratio suggests better debt management and a stronger ability to service debt using cash generated from core business activities.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46:

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

,

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46


Question: How does the Free Cash Flow for 2023 reflect the company's financial flexibility?

Free Cash Flow is calculated by subtracting capital expenditures from operating cash flow. For 2023, the operating cash flow is $3,458 million, and capital expenditures are $1,379 million. This gives a Free Cash Flow of $2,079 million. Positive Free Cash Flow indicates that the company has sufficient cash generated from operations to cover its capital expenditures and still have cash left over for other purposes, such as paying down debt, paying dividends, or investing in growth opportunities. This reflects strong financial flexibility and the ability to pursue strategic initiatives.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46:

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46


Question: How does the cash ratio for 2023 reflect the company's ability to cover its short-term liabilities with its most liquid assets?

The cash ratio is calculated by dividing cash and cash equivalents by current liabilities. For 2023, cash and cash equivalents are $2,264 million, and current liabilities are $5,608 million. This gives a cash ratio of approximately 0.40. This ratio indicates that the company has 40% of its current liabilities covered by its most liquid assets. While a cash ratio below 1 suggests that the company may not have enough cash on hand to cover all its short-term liabilities, it is not necessarily a cause for concern if the company has other liquid assets or strong cash flow from operations.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46:

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

,

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46


Question: Evaluate Halliburton's receivables turnover ratio from 2021 to 2023 and discuss its implications on the company's credit policies and collection efficiency.

The increasing receivables turnover ratio from 3.31 in 2021 to 4.85 in 2023 indicates that Halliburton has improved its efficiency in collecting receivables. A higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, which can be a sign of effective credit policies and efficient collection processes. This improvement can positively impact the company's cash flow and reduce the risk of bad debts.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: What does the Days Payable Outstanding (DPO) metric reveal about Halliburton's payment practices over the period from 2021 to 2023?

The DPO has decreased from 85.8 days in 2021 to 61.5 days in 2023. This reduction in DPO indicates that Halliburton has been paying its suppliers more quickly over the years. A lower DPO is generally favorable as it suggests that the company is able to settle its payables in a timely manner, which can strengthen supplier relationships and potentially lead to better credit terms. However, it is also important to consider the company's cash flow and liquidity position, as paying suppliers too quickly may impact the company's cash reserves. Overall, the improvement in DPO reflects positively on Halliburton's payment practices and its ability to manage its supplier relationships effectively.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: Analyze the asset turnover ratio for Halliburton from 2021 to 2023 and discuss its implications on the company's utilization of its assets to generate revenue.

The asset turnover ratio is calculated using the formula: Asset Turnover Ratio = Net Sales / Average Total Assets. For Halliburton, net sales are equivalent to total revenue.

Total revenue for Halliburton over the years is as follows:
- 2023: $23,018 million
- 2022: $20,297 million
- 2021: $15,295 million

The average total assets for each year can be calculated as the average of the beginning and ending total assets for that year. However, the beginning total assets for 2021 is not provided, so we will use the ending total assets of the previous year as the beginning total assets for the current year.

- Average Total Assets 2023: ($23,255 million + $24,683 million) / 2 = $23,969 million
- Average Total Assets 2022: ($23,255 million + $23,255 million) / 2 = $23,255 million
- Average Total Assets 2021: ($23,255 million + $23,255 million) / 2 = $23,255 million

Using these values, the asset turnover ratios are:
- 2023: $23,018 million / $23,969 million = 0.96
- 2022: $20,297 million / $23,255 million = 0.87
- 2021: $15,295 million / $23,255 million = 0.66

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: How does the receivables turnover ratio for General Mills in the fiscal year 2024 assess the company's efficiency in collecting receivables

The receivables turnover ratio is an efficiency metric that measures how effectively a company collects its receivables. It is calculated by dividing net sales by the average receivables. For General Mills in the fiscal year 2024, the net sales were $19,857.2 million, and the average receivables were approximately $1,689.7 million (calculated as the average of the beginning and ending receivables for the year). This results in a receivables turnover ratio of approximately 11.75. A higher receivables turnover ratio indicates that the company is efficiently collecting its receivables and converting them into cash. For General Mills, a receivables turnover ratio of 11.75 suggests that the company is collecting its receivables nearly 12 times a year. Efficient receivables management is crucial for maintaining healthy cash flow and reducing the risk of bad debts. The company must continue to focus on timely collection of receivables to ensure strong cash flow management and financial stability.

GENERAL MILLS INC 10-K form, page 42:

42

Consolidated Statements of Earnings

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except per Share Data)

Fiscal Year

2024
2023
2022
Net sales
$
19,857.2
$
20,094.2
$
18,992.8

Cost of sales

12,925.1
13,548.4
12,590.6
Selling, general, and administrative expenses
3,259.0
3,500.4
3,147.0
Divestitures gain, net
-
(444.6)
(194.1)
Restructuring, impairment, and other exit costs (recoveries)
241.4
56.2
(26.5)
Operating profit
3,431.7
3,433.8
3,475.8
Benefit plan non-service income
(75.8)
(88.8)
(113.4)
Interest, net
479.2
382.1
379.6
Earnings before income taxes and after-tax earnings
from joint ventures
3,028.3
3,140.5
3,209.6
Income taxes
594.5
612.2
586.3
After-tax earnings from joint ventures
84.8
81.3
111.7
Net earnings, including earnings attributable to redeemable and

noncontrolling interests
2,518.6
2,609.6
2,735.0
Net earnings attributable to redeemable and noncontrolling interests
22.0
15.7
27.7

Net earnings attributable to General Mills

$
2,496.6
$
2,593.9
$
2,707.3
Earnings per share - basic
$
4.34
$
4.36
$
4.46
Earnings per share - diluted
$
4.31
$
4.31
$
4.42
Dividends per share
$
2.36
$
2.16
$
2.04
See accompanying notes to consolidated financial statements.

, GENERAL MILLS INC 10-K form, page 44:

44

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

May 26, 2024

May 28, 2023

ASSETS

Current assets:

Cash and cash equivalents
$
418.0
$
585.5

Receivables

1,696.2
1,683.2

Inventories

1,898.2
2,172.0
Prepaid expenses and other current assets
568.5
735.7
Total current
assets
4,580.9
5,176.4
Land, buildings, and equipment
3,863.9
3,636.2

Goodwill

14,750.7
14,511.2
Other intangible assets
6,979.9
6,967.6
Other assets
1,294.5
1,160.3
Total assets
$
31,469.9
$
31,451.7

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable
$
3,987.8
$
4,194.2
Current portion of long-term debt
1,614.1
1,709.1
Notes payable
11.8
31.7
Other current liabilities
1,419.4
1,600.7
Total current
liabilities
7,033.1
7,535.7
Long-term debt
11,304.2
9,965.1
Deferred income taxes
2,200.6
2,110.9
Other liabilities
1,283.5
1,140.0
Total liabilities
21,821.4
20,751.7
Stockholders' equity:

Common stock,

754.6

shares issued, $
0.10

par value
75.5
75.5
Additional paid-in capital
1,227.0
1,222.4
Retained earnings
20,971.8
19,838.6

Common stock in treasury,

at cost, shares of

195.5

and

168.0
(10,357.9)
(8,410.0)
Accumulated other comprehensive loss
(2,519.7)
(2,276.9)

Total stockholders'

equity
9,396.7
10,449.6
Noncontrolling interests
251.8
250.4
Total equity
9,648.5
10,700.0
Total liabilities and equity
$
31,469.9
$
31,451.7
See accompanying notes to consolidated financial statements.

42

Consolidated Statements of Earnings

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except per Share Data)

Fiscal Year

2024
2023
2022
Net sales
$
19,857.2
$
20,094.2
$
18,992.8

Cost of sales

12,925.1
13,548.4
12,590.6
Selling, general, and administrative expenses
3,259.0
3,500.4
3,147.0
Divestitures gain, net
-
(444.6)
(194.1)
Restructuring, impairment, and other exit costs (recoveries)
241.4
56.2
(26.5)
Operating profit
3,431.7
3,433.8
3,475.8
Benefit plan non-service income
(75.8)
(88.8)
(113.4)
Interest, net
479.2
382.1
379.6
Earnings before income taxes and after-tax earnings
from joint ventures
3,028.3
3,140.5
3,209.6
Income taxes
594.5
612.2
586.3
After-tax earnings from joint ventures
84.8
81.3
111.7
Net earnings, including earnings attributable to redeemable and

noncontrolling interests
2,518.6
2,609.6
2,735.0
Net earnings attributable to redeemable and noncontrolling interests
22.0
15.7
27.7

Net earnings attributable to General Mills

$
2,496.6
$
2,593.9
$
2,707.3
Earnings per share - basic
$
4.34
$
4.36
$
4.46
Earnings per share - diluted
$
4.31
$
4.31
$
4.42
Dividends per share
$
2.36
$
2.16
$
2.04
See accompanying notes to consolidated financial statements.

,

44

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

May 26, 2024

May 28, 2023

ASSETS

Current assets:

Cash and cash equivalents
$
418.0
$
585.5

Receivables

1,696.2
1,683.2

Inventories

1,898.2
2,172.0
Prepaid expenses and other current assets
568.5
735.7
Total current
assets
4,580.9
5,176.4
Land, buildings, and equipment
3,863.9
3,636.2

Goodwill

14,750.7
14,511.2
Other intangible assets
6,979.9
6,967.6
Other assets
1,294.5
1,160.3
Total assets
$
31,469.9
$
31,451.7

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable
$
3,987.8
$
4,194.2
Current portion of long-term debt
1,614.1
1,709.1
Notes payable
11.8
31.7
Other current liabilities
1,419.4
1,600.7
Total current
liabilities
7,033.1
7,535.7
Long-term debt
11,304.2
9,965.1
Deferred income taxes
2,200.6
2,110.9
Other liabilities
1,283.5
1,140.0
Total liabilities
21,821.4
20,751.7
Stockholders' equity:

Common stock,

754.6

shares issued, $
0.10

par value
75.5
75.5
Additional paid-in capital
1,227.0
1,222.4
Retained earnings
20,971.8
19,838.6

Common stock in treasury,

at cost, shares of

195.5

and

168.0
(10,357.9)
(8,410.0)
Accumulated other comprehensive loss
(2,519.7)
(2,276.9)

Total stockholders'

equity
9,396.7
10,449.6
Noncontrolling interests
251.8
250.4
Total equity
9,648.5
10,700.0
Total liabilities and equity
$
31,469.9
$
31,451.7
See accompanying notes to consolidated financial statements.


Question: What does the cash flow analysis for General Mills in the fiscal year 2024 indicate about the company's liquidity and ability to generate cash from operations?

Cash flow analysis is a critical aspect of assessing a company's liquidity and its ability to generate cash from operations. For General Mills in the fiscal year 2024, the net cash provided by operating activities was $3,302.6 million. This figure indicates that the company generated substantial cash from its core operations, which is essential for meeting short-term obligations, investing in growth opportunities, and returning value to shareholders. A strong cash flow from operations suggests that the company has a healthy liquidity position and can cover its short-term liabilities without relying on external financing. Additionally, positive cash flow from operations provides the company with the flexibility to invest in capital expenditures, acquisitions, and other strategic initiatives. For General Mills, maintaining strong cash flow from operations is crucial for sustaining financial stability and supporting long-term growth. The company must continue to focus on efficient cash management and operational performance to ensure it can generate consistent cash flows and maintain liquidity.

GENERAL MILLS INC 10-K form, page 46:

46

Consolidated Statements of Cash Flows

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions)

Fiscal Year

2024
2023
2022

Cash Flows - Operating Activities

Net earnings, including earnings attributable to redeemable and noncontrolling interests
$
2,518.6
$
2,609.6
$
2,735.0
Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

552.7
546.6
570.3
After-tax earnings from joint ventures
(84.8)
(81.3)
(111.7)
Distributions of earnings from joint ventures
50.4
69.9
107.5
Stock-based compensation
95.3
111.7
98.7
Deferred income taxes
(48.5)
(22.2)
62.2
Pension and other postretirement benefit plan contributions
(30.1)
(30.1)
(31.3)
Pension and other postretirement benefit plan costs
(27.0)
(27.6)
(30.1)
Divestitures gain, net
-
(444.6)
(194.1)
Restructuring, impairment, and other exit costs (recoveries)
223.5
24.4
(117.1)
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures
10.6
(48.9)
277.4
Other, net
41.9
71.1
(50.7)
Net cash provided by operating activities
3,302.6
2,778.6
3,316.1

Cash Flows - Investing Activities

Purchases of land, buildings, and equipment

(774.1)
(689.5)
(568.7)
Acquisitions, net of cash acquired
(451.9)
(251.5)
(1,201.3)

Investments in affiliates, net

(2.7)
(32.2)
15.4
Proceeds from disposal of land, buildings, and equipment
0.8
1.3
3.3
Proceeds from divestitures, net of cash divested
-
633.1
74.1
Other, net
30.5
(7.6)
(13.5)
Net cash used by investing activities
(1,197.4)
(346.4)
(1,690.7)

Cash Flows - Financing Activities

Change in notes payable
(20.5)
(769.3)
551.4

Issuance of long-term debt

2,065.2
2,324.4
2,203.7

Payment of long-term debt

(901.5)
(1,421.7)
(3,140.9)
Proceeds from common stock issued on exercised options
25.5
232.3
161.7
Purchases of common stock for treasury
(2,002.4)
(1,403.6)
(876.8)
Dividends paid
(1,363.4)
(1,287.9)
(1,244.5)
Distributions to redeemable and noncontrolling interest holders
(21.3)
(15.7)
(129.8)
Other, net
(53.9)
(62.6)
(28.0)
Net cash used by financing activities
(2,272.3)
(2,404.1)
(2,503.2)
Effect of exchange rate changes on cash and cash equivalents
(0.4)
(12.0)
(58.0)
(Decrease) increase in cash and cash equivalents
(167.5)
16.1
(935.8)
Cash and cash equivalents - beginning of year
585.5
569.4
1,505.2
Cash and cash equivalents - end of year
$
418.0
$
585.5
$
569.4
Cash flow from changes in current assets and liabilities, excluding the effects of acquisitions and

divestitures:

Receivables

$
(1.8)
$
(41.2)
$
(166.3)

Inventories

287.6
(319.0)
(85.8)
Prepaid expenses and other current assets
167.0
61.6
(35.3)
Accounts payable
(251.2)
199.8
456.7
Other current liabilities
(191.0)
49.9
108.1
Changes in current assets and liabilities
$
10.6
$
(48.9)
$
277.4
See accompanying notes to consolidated financial statements.


Question: What is the significance of the net income metric for General Mills in the fiscal year 2024, and how does it impact the company's overall profitability?

Net income is a crucial profitability metric that indicates the company's total earnings after all expenses, taxes, and costs have been deducted from total revenue. For General Mills, the net income for the fiscal year 2024 was $2,496.6 million. This figure is slightly lower than the net income of $2,593.9 million in 2023 and $2,707.3 million in 2022. The net income metric is significant because it provides a clear picture of the company's profitability and financial health. A decline in net income, as seen in 2024, could signal potential issues such as increased costs, reduced sales, or other financial challenges. This decrease in net income can impact the company's ability to reinvest in its operations, pay dividends, and meet its financial obligations. Additionally, a lower net income might affect investor confidence and the company's stock price. It is essential for General Mills to analyze the factors contributing to this decline and address any underlying issues to ensure sustained profitability and financial stability.

GENERAL MILLS INC 10-K form, page 42:

42

Consolidated Statements of Earnings

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except per Share Data)

Fiscal Year

2024
2023
2022
Net sales
$
19,857.2
$
20,094.2
$
18,992.8

Cost of sales

12,925.1
13,548.4
12,590.6
Selling, general, and administrative expenses
3,259.0
3,500.4
3,147.0
Divestitures gain, net
-
(444.6)
(194.1)
Restructuring, impairment, and other exit costs (recoveries)
241.4
56.2
(26.5)
Operating profit
3,431.7
3,433.8
3,475.8
Benefit plan non-service income
(75.8)
(88.8)
(113.4)
Interest, net
479.2
382.1
379.6
Earnings before income taxes and after-tax earnings
from joint ventures
3,028.3
3,140.5
3,209.6
Income taxes
594.5
612.2
586.3
After-tax earnings from joint ventures
84.8
81.3
111.7
Net earnings, including earnings attributable to redeemable and

noncontrolling interests
2,518.6
2,609.6
2,735.0
Net earnings attributable to redeemable and noncontrolling interests
22.0
15.7
27.7

Net earnings attributable to General Mills

$
2,496.6
$
2,593.9
$
2,707.3
Earnings per share - basic
$
4.34
$
4.36
$
4.46
Earnings per share - diluted
$
4.31
$
4.31
$
4.42
Dividends per share
$
2.36
$
2.16
$
2.04
See accompanying notes to consolidated financial statements.


Question: What was Discover’s Delinquency Ratio for 2023, and what does this suggest about the risk in its loan portfolio?

Discover’s Delinquency Ratio for 2023 can be calculated as follows:

30 Days Delinquent
Total Delinquent Loans: $4,427 million
Total Loans: $128,409 million
30-Day Delinquency Ratio =3.45%

90 or More Days Delinquent
Total Delinquent Loans: $2,314 million
Total Loans: $128,409 million
90-Day Delinquency Ratio=1.59%

Implications:
Increased Delinquency Rates: The 30-day delinquency ratio of 3.45% in 2023, up from 2.30% in 2022, and the 90-day delinquency ratio of 1.59%, up from 0.98% in 2022, indicate a deterioration in credit quality.
Risk in Loan Portfolio: Higher delinquency rates signal increased credit risk within the loan portfolio.

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations;Item 8.    Financial Statements and Supplementary Data

Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 67:
Delinquencies

Delinquencies are an indicator of credit quality at a point in time. A loan balance is considered delinquent when contractual payments on the loan become 30 days past due.
The following table presents the amounts and delinquency rates of key loan products that are 30 and 90 days or more delinquent, and loan receivables that are not accruing interest regardless of delinquency (dollars in millions):|    |                                  |              |       |      |      |    |    |    |       |      |    |
|---:|:---------------------------------|:-------------|:------|:-----|:-----|:---|:---|:---|:------|:-----|:---|
|  1 |                                  | December 31, |       |      |      |    |    |    |       |      |    |
|  2 |                                  | 2023         |       | 2022 |      |    |    |    |       |      |    |
|  3 |                                  | $            |       | %    | $    |    | %  |    |       |      |    |
|  4 | Loans 30 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
|  5 | Credit card loans                | $            | 3,955 |      | 3.87 | %  |    | $  | 2,278 | 2.53 | %  |
|  6 | Private student loans            | $            | 271   |      | 2.62 | %  |    | $  | 212   | 2.05 | %  |
|  7 | Personal loans                   | $            | 143   |      | 1.45 | %  |    | $  | 63    | 0.80 | %  |
|  9 | Total loan receivables           | $            | 4,427 |      | 3.45 | %  |    | $  | 2,578 | 2.30 | %  |
| 11 | Loans 90 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
| 12 | Credit card loans                | $            | 1,917 |      | 1.87 | %  |    | $  | 1,028 | 1.14 | %  |
| 13 | Private student loans            | $            | 70    |      | 0.67 | %  |    | $  | 45    | 0.43 | %  |
| 14 | Personal loans                   | $            | 39    |      | 0.40 | %  |    | $  | 16    | 0.21 | %  |
| 16 | Total loan receivables           | $            | 2,045 |      | 1.59 | %  |    | $  | 1,101 | 0.98 | %  |
| 18 | Loans not accruing interest      | $            | 269   |      | 0.21 | %  |    | $  | 214   | 0.19 | %  |
The 30-day and 90-day delinquency rates for credit card loans, private student loans, and personal loans at December 31, 2023, increased compared to December 31, 2022, primarily driven by portfolio seasoning.

Modified and Restructured Loans

For information regarding modified and restructured loans, see Note 4: Loan Receivables to our condensed consolidated financial statements.

Maturities and Sensitivities of Loan Receivables to Changes in Interest Rates

Our loan portfolio had the following maturity distribution(1) (dollars in millions):
|    |                       |                    |        |                                    |       |                                           |        |                         |       |        |        |       |    |         |
|---:|:----------------------|:-------------------|:-------|:-----------------------------------|:------|:------------------------------------------|:-------|:------------------------|:------|:-------|:-------|:------|:---|:--------|
|  1 | At December 31, 2023  | Due OneYear orLess |        | Due AfterOne YearThroughFive Years |       | Due AfterFive Years Through Fifteen Years |        | Due After Fifteen Years | Total |        |        |       |    |         |
|  2 | Credit card loans     | $                  | 32,250 |                                    |       | $                                         | 54,628 |                         | $     | 15,032 | $      | 349   | $  | 102,259 |
|  3 | Private student loans | 364                |        |                                    | 2,083 |                                           |        | 6,296                   |       | 1,609  | 10,352 |       |    |         |
|  4 | Personal loans        | 2,653              |        |                                    | 6,653 |                                           |        | 546                     |       | -      | 9,852  |       |    |         |
|  5 | Other loans           | 161                |        |                                    | 724   |                                           |        | 2,102                   |       | 2,959  | 5,946  |       |    |         |
|  6 | Total loan portfolio  | $                  | 35,428 |                                    |       | $                                         | 64,088 |                         | $     | 23,976 | $      | 4,917 | $  | 128,409 |

(1)    Because of the uncertainty regarding loan repayment patterns, the above amounts have been calculated using contractually required minimum payments. Historically, actual loan repayments have been higher than such minimum payments and, therefore, the above amounts may not necessarily be indicative of our actual loan repayments.
At December 31, 2023, approximately $55.9 billion of our loan portfolio due after one year had interest rates tied to an index and approximately $37.0 billion were fixed-rate loans.
-67-

, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85:
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)|    |                                                                                |              |         |      |          |    |         |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------|
|  1 |                                                                                | December 31, |         |      |          |    |         |
|  2 |                                                                                | 2023         |         | 2022 |          |    |         |
|  3 | Assets                                                                                |              |         |      |          |    |         |
|  4 | Cash and cash equivalents                                                                                | $            | 11,685  |      |          | $  | 8,856   |
|  5 | Restricted cash                                                                                | 43           |         |      | 41       |    |         |
|  7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655       |         |      | 12,208   |    |         |
|  8 | Loan receivables                                                                                |              |         |      |          |    |         |
|  9 | Loan receivables                                                                                | 128,409      |         |      | 112,120  |    |         |
| 10 | Allowance for credit losses                                                                                | (9,283)      |         |      | (7,374)  |    |         |
| 11 | Net loan receivables                                                                                | 119,126      |         |      | 104,746  |    |         |
| 12 | Premises and equipment, net                                                                                | 1,091        |         |      | 1,003    |    |         |
| 13 | Goodwill                                                                                | 255          |         |      | 255      |    |         |
| 15 | Other assets                                                                                | 5,667        |         |      | 4,597    |    |         |
| 16 | Total assets                                                                                | $            | 151,522 |      |          | $  | 131,706 |
| 17 | Liabilities and Stockholders' Equity                                                                                |              |         |      |          |    |         |
| 18 | Liabilities                                                                                |              |         |      |          |    |         |
| 19 | Deposits                                                                                |              |         |      |          |    |         |
| 20 | Interest-bearing deposit accounts                                                                                | $            | 107,493 |      |          | $  | 90,151  |
| 21 | Non-interest-bearing deposit accounts                                                                                | 1,438        |         |      | 1,485    |    |         |
| 22 | Total deposits                                                                                | 108,931      |         |      | 91,636   |    |         |
| 23 | Short-term borrowings                                                                                | 750          |         |      | -        |    |         |
| 24 | Long-term borrowings                                                                                | 20,581       |         |      | 20,108   |    |         |
| 25 | Accrued expenses and other liabilities                                                                                | 6,432        |         |      | 5,618    |    |         |
| 26 | Total liabilities                                                                                | 136,694      |         |      | 117,362  |    |         |
| 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19)                                                                                |              |         |      |          |    |         |
| 28 | Stockholders' Equity                                                                                |              |         |      |          |    |         |
| 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively                                                | 6            |         |      | 6        |    |         |
| 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively                                                    | 1,056        |         |      | 1,056    |    |         |
| 31 | Additional paid-in capital                                                                                | 4,553        |         |      | 4,468    |    |         |
| 32 | Retained earnings                                                                                | 30,448       |         |      | 28,207   |    |         |
| 33 | Accumulated other comprehensive loss                                                                                | (225)        |         |      | (339)    |    |         |
| 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively                                                                                | (21,010)     |         |      | (19,054) |    |         |
| 35 | Total stockholders' equity                                                                                | 14,828       |         |      | 14,344   |    |         |
| 36 | Total liabilities and stockholders' equity                                                                                | $            | 151,522 |      |          | $  | 131,706 |
The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.
|    |                                                                       |              |         |      |    |         |
|---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------|
|  1 |                                                                       | December 31, |         |      |    |         |
|  2 |                                                                       | 2023         |         | 2022 |    |         |
|  3 | Assets                                                                |              |         |      |    |         |
|  4 | Restricted cash                                                       | $            | 43      |      | $  | 41      |
|  5 | Loan receivables                                                      | $            | 30,590  |      | $  | 25,937  |
|  6 | Allowance for credit losses allocated to securitized loan receivables | $            | (1,347) |      | $  | (1,152) |
|  7 | Other assets                                                          | $            | 3       |      | $  | 3       |
|  8 | Liabilities                                                           |              |         |      |    |         |
|  9 | Short- and long-term borrowings                                       | $            | 11,743  |      | $  | 10,259  |
| 10 | Accrued expenses and other liabilities                                | $            | 19      |      | $  | 14      |

See Notes to the Consolidated Financial Statements.

-85-

Delinquencies

Delinquencies are an indicator of credit quality at a point in time. A loan balance is considered delinquent when contractual payments on the loan become 30 days past due.
The following table presents the amounts and delinquency rates of key loan products that are 30 and 90 days or more delinquent, and loan receivables that are not accruing interest regardless of delinquency (dollars in millions):|    |                                  |              |       |      |      |    |    |    |       |      |    |
|---:|:---------------------------------|:-------------|:------|:-----|:-----|:---|:---|:---|:------|:-----|:---|
|  1 |                                  | December 31, |       |      |      |    |    |    |       |      |    |
|  2 |                                  | 2023         |       | 2022 |      |    |    |    |       |      |    |
|  3 |                                  | $            |       | %    | $    |    | %  |    |       |      |    |
|  4 | Loans 30 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
|  5 | Credit card loans                | $            | 3,955 |      | 3.87 | %  |    | $  | 2,278 | 2.53 | %  |
|  6 | Private student loans            | $            | 271   |      | 2.62 | %  |    | $  | 212   | 2.05 | %  |
|  7 | Personal loans                   | $            | 143   |      | 1.45 | %  |    | $  | 63    | 0.80 | %  |
|  9 | Total loan receivables           | $            | 4,427 |      | 3.45 | %  |    | $  | 2,578 | 2.30 | %  |
| 11 | Loans 90 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
| 12 | Credit card loans                | $            | 1,917 |      | 1.87 | %  |    | $  | 1,028 | 1.14 | %  |
| 13 | Private student loans            | $            | 70    |      | 0.67 | %  |    | $  | 45    | 0.43 | %  |
| 14 | Personal loans                   | $            | 39    |      | 0.40 | %  |    | $  | 16    | 0.21 | %  |
| 16 | Total loan receivables           | $            | 2,045 |      | 1.59 | %  |    | $  | 1,101 | 0.98 | %  |
| 18 | Loans not accruing interest      | $            | 269   |      | 0.21 | %  |    | $  | 214   | 0.19 | %  |
The 30-day and 90-day delinquency rates for credit card loans, private student loans, and personal loans at December 31, 2023, increased compared to December 31, 2022, primarily driven by portfolio seasoning.

Modified and Restructured Loans

For information regarding modified and restructured loans, see Note 4: Loan Receivables to our condensed consolidated financial statements.

Maturities and Sensitivities of Loan Receivables to Changes in Interest Rates

Our loan portfolio had the following maturity distribution(1) (dollars in millions):
|    |                       |                    |        |                                    |       |                                           |        |                         |       |        |        |       |    |         |
|---:|:----------------------|:-------------------|:-------|:-----------------------------------|:------|:------------------------------------------|:-------|:------------------------|:------|:-------|:-------|:------|:---|:--------|
|  1 | At December 31, 2023  | Due OneYear orLess |        | Due AfterOne YearThroughFive Years |       | Due AfterFive Years Through Fifteen Years |        | Due After Fifteen Years | Total |        |        |       |    |         |
|  2 | Credit card loans     | $                  | 32,250 |                                    |       | $                                         | 54,628 |                         | $     | 15,032 | $      | 349   | $  | 102,259 |
|  3 | Private student loans | 364                |        |                                    | 2,083 |                                           |        | 6,296                   |       | 1,609  | 10,352 |       |    |         |
|  4 | Personal loans        | 2,653              |        |                                    | 6,653 |                                           |        | 546                     |       | -      | 9,852  |       |    |         |
|  5 | Other loans           | 161                |        |                                    | 724   |                                           |        | 2,102                   |       | 2,959  | 5,946  |       |    |         |
|  6 | Total loan portfolio  | $                  | 35,428 |                                    |       | $                                         | 64,088 |                         | $     | 23,976 | $      | 4,917 | $  | 128,409 |

(1)    Because of the uncertainty regarding loan repayment patterns, the above amounts have been calculated using contractually required minimum payments. Historically, actual loan repayments have been higher than such minimum payments and, therefore, the above amounts may not necessarily be indicative of our actual loan repayments.
At December 31, 2023, approximately $55.9 billion of our loan portfolio due after one year had interest rates tied to an index and approximately $37.0 billion were fixed-rate loans.
-67-

,
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)|    |                                                                                |              |         |      |          |    |         |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------|
|  1 |                                                                                | December 31, |         |      |          |    |         |
|  2 |                                                                                | 2023         |         | 2022 |          |    |         |
|  3 | Assets                                                                                |              |         |      |          |    |         |
|  4 | Cash and cash equivalents                                                                                | $            | 11,685  |      |          | $  | 8,856   |
|  5 | Restricted cash                                                                                | 43           |         |      | 41       |    |         |
|  7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655       |         |      | 12,208   |    |         |
|  8 | Loan receivables                                                                                |              |         |      |          |    |         |
|  9 | Loan receivables                                                                                | 128,409      |         |      | 112,120  |    |         |
| 10 | Allowance for credit losses                                                                                | (9,283)      |         |      | (7,374)  |    |         |
| 11 | Net loan receivables                                                                                | 119,126      |         |      | 104,746  |    |         |
| 12 | Premises and equipment, net                                                                                | 1,091        |         |      | 1,003    |    |         |
| 13 | Goodwill                                                                                | 255          |         |      | 255      |    |         |
| 15 | Other assets                                                                                | 5,667        |         |      | 4,597    |    |         |
| 16 | Total assets                                                                                | $            | 151,522 |      |          | $  | 131,706 |
| 17 | Liabilities and Stockholders' Equity                                                                                |              |         |      |          |    |         |
| 18 | Liabilities                                                                                |              |         |      |          |    |         |
| 19 | Deposits                                                                                |              |         |      |          |    |         |
| 20 | Interest-bearing deposit accounts                                                                                | $            | 107,493 |      |          | $  | 90,151  |
| 21 | Non-interest-bearing deposit accounts                                                                                | 1,438        |         |      | 1,485    |    |         |
| 22 | Total deposits                                                                                | 108,931      |         |      | 91,636   |    |         |
| 23 | Short-term borrowings                                                                                | 750          |         |      | -        |    |         |
| 24 | Long-term borrowings                                                                                | 20,581       |         |      | 20,108   |    |         |
| 25 | Accrued expenses and other liabilities                                                                                | 6,432        |         |      | 5,618    |    |         |
| 26 | Total liabilities                                                                                | 136,694      |         |      | 117,362  |    |         |
| 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19)                                                                                |              |         |      |          |    |         |
| 28 | Stockholders' Equity                                                                                |              |         |      |          |    |         |
| 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively                                                | 6            |         |      | 6        |    |         |
| 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively                                                    | 1,056        |         |      | 1,056    |    |         |
| 31 | Additional paid-in capital                                                                                | 4,553        |         |      | 4,468    |    |         |
| 32 | Retained earnings                                                                                | 30,448       |         |      | 28,207   |    |         |
| 33 | Accumulated other comprehensive loss                                                                                | (225)        |         |      | (339)    |    |         |
| 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively                                                                                | (21,010)     |         |      | (19,054) |    |         |
| 35 | Total stockholders' equity                                                                                | 14,828       |         |      | 14,344   |    |         |
| 36 | Total liabilities and stockholders' equity                                                                                | $            | 151,522 |      |          | $  | 131,706 |
The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.
|    |                                                                       |              |         |      |    |         |
|---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------|
|  1 |                                                                       | December 31, |         |      |    |         |
|  2 |                                                                       | 2023         |         | 2022 |    |         |
|  3 | Assets                                                                |              |         |      |    |         |
|  4 | Restricted cash                                                       | $            | 43      |      | $  | 41      |
|  5 | Loan receivables                                                      | $            | 30,590  |      | $  | 25,937  |
|  6 | Allowance for credit losses allocated to securitized loan receivables | $            | (1,347) |      | $  | (1,152) |
|  7 | Other assets                                                          | $            | 3       |      | $  | 3       |
|  8 | Liabilities                                                           |              |         |      |    |         |
|  9 | Short- and long-term borrowings                                       | $            | 11,743  |      | $  | 10,259  |
| 10 | Accrued expenses and other liabilities                                | $            | 19      |      | $  | 14      |

See Notes to the Consolidated Financial Statements.

-85-

Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 67:
Delinquencies

Delinquencies are an indicator of credit quality at a point in time. A loan balance is considered delinquent when contractual payments on the loan become 30 days past due.
The following table presents the amounts and delinquency rates of key loan products that are 30 and 90 days or more delinquent, and loan receivables that are not accruing interest regardless of delinquency (dollars in millions):

	December 31,

 	2023		2022

 	$		%		$		%

Loans 30 or more days delinquent

Credit card loans	$	3,955 			3.87 	%		$	2,278 			2.53 	%

Private student loans	$	271 			2.62 	%		$	212 			2.05 	%

Personal loans	$	143 			1.45 	%		$	63 			0.80 	%

Total loan receivables	$	4,427 			3.45 	%		$	2,578 			2.30 	%

Loans 90 or more days delinquent

Credit card loans	$	1,917 			1.87 	%		$	1,028 			1.14 	%

Private student loans	$	70 			0.67 	%		$	45 			0.43 	%

Personal loans	$	39 			0.40 	%		$	16 			0.21 	%

Total loan receivables	$	2,045 			1.59 	%		$	1,101 			0.98 	%

Loans not accruing interest	$	269 			0.21 	%		$	214 			0.19 	%

The 30-day and 90-day delinquency rates for credit card loans, private student loans, and personal loans at December 31, 2023, increased compared to December 31, 2022, primarily driven by portfolio seasoning.

Modified and Restructured Loans

For information regarding modified and restructured loans, see Note 4: Loan Receivables to our condensed consolidated financial statements.

Maturities and Sensitivities of Loan Receivables to Changes in Interest Rates

Our loan portfolio had the following maturity distribution(1) (dollars in millions):

At December 31, 2023	Due OneYear orLess		Due AfterOne YearThroughFive Years		Due AfterFive Years Through Fifteen Years		Due After Fifteen Years		Total

Credit card loans	$	32,250 			$	54,628 			$	15,032 			$	349 			$	102,259

Private student loans	364 			2,083 			6,296 			1,609 			10,352

Personal loans	2,653 			6,653 			546 			- 			9,852

Other loans	161 			724 			2,102 			2,959 			5,946

Total loan portfolio	$	35,428 			$	64,088 			$	23,976 			$	4,917 			$	128,409

(1)    Because of the uncertainty regarding loan repayment patterns, the above amounts have been calculated using contractually required minimum payments. Historically, actual loan repayments have been higher than such minimum payments and, therefore, the above amounts may not necessarily be indicative of our actual loan repayments.
At December 31, 2023, approximately $55.9 billion of our loan portfolio due after one year had interest rates tied to an index and approximately $37.0 billion were fixed-rate loans.
-67-

, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85:
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)

	December 31,

	2023		2022

Assets

Cash and cash equivalents	$	11,685 			$	8,856

Restricted cash	43 			41

Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)	13,655 			12,208

Loan receivables

Loan receivables	128,409 			112,120

Allowance for credit losses	(9,283)			(7,374)

Net loan receivables	119,126 			104,746

Premises and equipment, net	1,091 			1,003

Goodwill	255 			255

Other assets	5,667 			4,597

Total assets	$	151,522 			$	131,706

Liabilities and Stockholders' Equity

Liabilities

Deposits

Interest-bearing deposit accounts	$	107,493 			$	90,151

Non-interest-bearing deposit accounts	1,438 			1,485

Total deposits	108,931 			91,636

Short-term borrowings	750 			-

Long-term borrowings	20,581 			20,108

Accrued expenses and other liabilities	6,432 			5,618

Total liabilities	136,694 			117,362

Commitments, contingencies and guarantees (Notes 15, 18 and 19)

Stockholders' Equity

Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively	6 			6

Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively	1,056 			1,056

Additional paid-in capital	4,553 			4,468

Retained earnings	30,448 			28,207

Accumulated other comprehensive loss	(225)			(339)

Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively	(21,010)			(19,054)

Total stockholders' equity	14,828 			14,344

Total liabilities and stockholders' equity	$	151,522 			$	131,706

The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.

	December 31,

	2023		2022

Assets

Restricted cash	$	43 			$	41

Loan receivables	$	30,590 			$	25,937

Allowance for credit losses allocated to securitized loan receivables	$	(1,347)			$	(1,152)

Other assets	$	3 			$	3

Liabilities

Short- and long-term borrowings	$	11,743 			$	10,259

Accrued expenses and other liabilities	$	19 			$	14

See Notes to the Consolidated Financial Statements.

-85-

Delinquencies

Delinquencies are an indicator of credit quality at a point in time. A loan balance is considered delinquent when contractual payments on the loan become 30 days past due.
The following table presents the amounts and delinquency rates of key loan products that are 30 and 90 days or more delinquent, and loan receivables that are not accruing interest regardless of delinquency (dollars in millions):

	December 31,

 	2023		2022

 	$		%		$		%

Loans 30 or more days delinquent

Credit card loans	$	3,955 			3.87 	%		$	2,278 			2.53 	%

Private student loans	$	271 			2.62 	%		$	212 			2.05 	%

Personal loans	$	143 			1.45 	%		$	63 			0.80 	%

Total loan receivables	$	4,427 			3.45 	%		$	2,578 			2.30 	%

Loans 90 or more days delinquent

Credit card loans	$	1,917 			1.87 	%		$	1,028 			1.14 	%

Private student loans	$	70 			0.67 	%		$	45 			0.43 	%

Personal loans	$	39 			0.40 	%		$	16 			0.21 	%

Total loan receivables	$	2,045 			1.59 	%		$	1,101 			0.98 	%

Loans not accruing interest	$	269 			0.21 	%		$	214 			0.19 	%

The 30-day and 90-day delinquency rates for credit card loans, private student loans, and personal loans at December 31, 2023, increased compared to December 31, 2022, primarily driven by portfolio seasoning.

Modified and Restructured Loans

For information regarding modified and restructured loans, see Note 4: Loan Receivables to our condensed consolidated financial statements.

Maturities and Sensitivities of Loan Receivables to Changes in Interest Rates

Our loan portfolio had the following maturity distribution(1) (dollars in millions):

At December 31, 2023	Due OneYear orLess		Due AfterOne YearThroughFive Years		Due AfterFive Years Through Fifteen Years		Due After Fifteen Years		Total

Credit card loans	$	32,250 			$	54,628 			$	15,032 			$	349 			$	102,259

Private student loans	364 			2,083 			6,296 			1,609 			10,352

Personal loans	2,653 			6,653 			546 			- 			9,852

Other loans	161 			724 			2,102 			2,959 			5,946

Total loan portfolio	$	35,428 			$	64,088 			$	23,976 			$	4,917 			$	128,409

(1)    Because of the uncertainty regarding loan repayment patterns, the above amounts have been calculated using contractually required minimum payments. Historically, actual loan repayments have been higher than such minimum payments and, therefore, the above amounts may not necessarily be indicative of our actual loan repayments.
At December 31, 2023, approximately $55.9 billion of our loan portfolio due after one year had interest rates tied to an index and approximately $37.0 billion were fixed-rate loans.
-67-

,
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)

	December 31,

	2023		2022

Assets

Cash and cash equivalents	$	11,685 			$	8,856

Restricted cash	43 			41

Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)	13,655 			12,208

Loan receivables

Loan receivables	128,409 			112,120

Allowance for credit losses	(9,283)			(7,374)

Net loan receivables	119,126 			104,746

Premises and equipment, net	1,091 			1,003

Goodwill	255 			255

Other assets	5,667 			4,597

Total assets	$	151,522 			$	131,706

Liabilities and Stockholders' Equity

Liabilities

Deposits

Interest-bearing deposit accounts	$	107,493 			$	90,151

Non-interest-bearing deposit accounts	1,438 			1,485

Total deposits	108,931 			91,636

Short-term borrowings	750 			-

Long-term borrowings	20,581 			20,108

Accrued expenses and other liabilities	6,432 			5,618

Total liabilities	136,694 			117,362

Commitments, contingencies and guarantees (Notes 15, 18 and 19)

Stockholders' Equity

Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively	6 			6

Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively	1,056 			1,056

Additional paid-in capital	4,553 			4,468

Retained earnings	30,448 			28,207

Accumulated other comprehensive loss	(225)			(339)

Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively	(21,010)			(19,054)

Total stockholders' equity	14,828 			14,344

Total liabilities and stockholders' equity	$	151,522 			$	131,706

The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.

	December 31,

	2023		2022

Assets

Restricted cash	$	43 			$	41

Loan receivables	$	30,590 			$	25,937

Allowance for credit losses allocated to securitized loan receivables	$	(1,347)			$	(1,152)

Other assets	$	3 			$	3

Liabilities

Short- and long-term borrowings	$	11,743 			$	10,259

Accrued expenses and other liabilities	$	19 			$	14

See Notes to the Consolidated Financial Statements.

-85-


Question: How did Tesla's short-term debt and lease obligations evolve between 2019 and 2020, and what implications does this have for its financial health?

In 2020, the current portion of debt and finance leases rose to $2,132 million from $1,785 million in 2019, indicating an increase in short-term financial obligations. This could impact Tesla’s ability to manage its liquidity and cash flow in the coming year.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

51

Equity

Stockholders' equity

Preferred stock; $0.001 par value; 100 shares authorized;     no shares issued and outstanding

-

-

Common stock; $0.001 par value; 2,000 shares authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49