Stock Analysis on Net

Schlumberger Ltd. (NYSE:SLB)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Schlumberger Ltd., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 6.06 5.73 5.89 6.26 6.95
Receivables turnover 4.24 3.99 4.31 4.50 4.25
Payables turnover 5.76 5.85 6.01 7.15 6.00
Working capital turnover 7.66 9.41 9.99 9.72 13.53
Average No. Days
Average inventory processing period 60 64 62 58 52
Add: Average receivable collection period 86 91 85 81 86
Operating cycle 146 155 147 139 138
Less: Average payables payment period 63 62 61 51 61
Cash conversion cycle 83 93 86 88 77

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Schlumberger Ltd. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Schlumberger Ltd. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Schlumberger Ltd. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Schlumberger Ltd. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Schlumberger Ltd. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Schlumberger Ltd. number of days of receivables outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Schlumberger Ltd. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Schlumberger Ltd. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Schlumberger Ltd. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Inventory Turnover

Schlumberger Ltd., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of revenue 26,572 22,930 19,271 21,000 28,720
Inventories 4,387 3,999 3,272 3,354 4,130
Short-term Activity Ratio
Inventory turnover1 6.06 5.73 5.89 6.26 6.95
Benchmarks
Inventory Turnover, Industry
Energy 15.45 19.51 16.27 10.31 14.32

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of revenue ÷ Inventories
= 26,572 ÷ 4,387 = 6.06

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Schlumberger Ltd. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Receivables Turnover

Schlumberger Ltd., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 33,135 28,091 22,929 23,601 32,917
Receivables less allowance for doubtful accounts 7,812 7,032 5,315 5,247 7,747
Short-term Activity Ratio
Receivables turnover1 4.24 3.99 4.31 4.50 4.25
Benchmarks
Receivables Turnover, Industry
Energy 10.55 11.79 9.24 9.67 10.53

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Revenue ÷ Receivables less allowance for doubtful accounts
= 33,135 ÷ 7,812 = 4.24

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Schlumberger Ltd. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Payables Turnover

Schlumberger Ltd., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of revenue 26,572 22,930 19,271 21,000 28,720
Trade accounts payable 4,613 3,921 3,205 2,937 4,790
Short-term Activity Ratio
Payables turnover1 5.76 5.85 6.01 7.15 6.00
Benchmarks
Payables Turnover, Industry
Energy 9.89 11.50 9.15 9.07 9.14

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of revenue ÷ Trade accounts payable
= 26,572 ÷ 4,613 = 5.76

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Schlumberger Ltd. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Schlumberger Ltd., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 17,718 15,003 12,654 12,919 15,530
Less: Current liabilities 13,395 12,018 10,359 10,491 13,098
Working capital 4,323 2,985 2,295 2,428 2,432
 
Revenue 33,135 28,091 22,929 23,601 32,917
Short-term Activity Ratio
Working capital turnover1 7.66 9.41 9.99 9.72 13.53
Benchmarks
Working Capital Turnover, Industry
Energy 13.57 14.76 22.01 21.93 51.98

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 33,135 ÷ 4,323 = 7.66

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Schlumberger Ltd. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Inventory Processing Period

Schlumberger Ltd., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 6.06 5.73 5.89 6.26 6.95
Short-term Activity Ratio (no. days)
Average inventory processing period1 60 64 62 58 52
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Energy 24 19 22 35 25

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.06 = 60

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Schlumberger Ltd. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Average Receivable Collection Period

Schlumberger Ltd., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 4.24 3.99 4.31 4.50 4.25
Short-term Activity Ratio (no. days)
Average receivable collection period1 86 91 85 81 86
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Energy 35 31 40 38 35

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.24 = 86

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Schlumberger Ltd. number of days of receivables outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Operating Cycle

Schlumberger Ltd., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 60 64 62 58 52
Average receivable collection period 86 91 85 81 86
Short-term Activity Ratio
Operating cycle1 146 155 147 139 138
Benchmarks
Operating Cycle, Industry
Energy 59 50 62 73 60

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 60 + 86 = 146

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Schlumberger Ltd. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Average Payables Payment Period

Schlumberger Ltd., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 5.76 5.85 6.01 7.15 6.00
Short-term Activity Ratio (no. days)
Average payables payment period1 63 62 61 51 61
Benchmarks (no. days)
Average Payables Payment Period, Industry
Energy 37 32 40 40 40

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.76 = 63

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Schlumberger Ltd. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

Schlumberger Ltd., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 60 64 62 58 52
Average receivable collection period 86 91 85 81 86
Average payables payment period 63 62 61 51 61
Short-term Activity Ratio
Cash conversion cycle1 83 93 86 88 77
Benchmarks
Cash Conversion Cycle, Industry
Energy 22 18 22 33 20

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 60 + 8663 = 83

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Schlumberger Ltd. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.