SLB N.V. (NYSE:SLB)

The analysis of the company's debt data over the five-year period reveals notable trends in both short-term and long-term borrowings. There is particular interest in how the composition and total amount of debt have evolved from 2020 through 2024.

Short-term Borrowings and Current Portion of Long-term Debt

Initially, there was a moderate increase in short-term borrowings from 850 million USD in 2020 to 909 million USD in 2021. This was followed by a substantial surge to 1,632 million USD in 2022, indicating a significant short-term funding requirement or refinancing activity during that year. However, the short-term debt amount then decreased in the subsequent years, dropping to 1,123 million USD in 2023 and further to 1,051 million USD in 2024. This decline suggests an improvement in short-term liquidity management or repayment of short-term obligations.

Long-term Debt, Excluding Current Portion

The long-term debt exhibited a clear downward trend from 16,036 million USD in 2020 to 10,594 million USD in 2022. This reduction indicates an effort to decrease reliance on long-term liabilities, possibly through repayments or refinancing strategies. From 2022 onward, the long-term debt slightly increased to 10,842 million USD in 2023 and 11,023 million USD in 2024, which might reflect new long-term borrowing or adjustments in debt structure.

Total Debt (Carrying Amount)

The total debt decreased consistently from 16,886 million USD in 2020 to 12,226 million USD in 2022, mirroring the declines in both short-term and long-term debt components observed during this period. Following this, the total debt levels stabilized with minor fluctuations, reporting 11,965 million USD in 2023 and a slight increase to 12,074 million USD in 2024. This stability indicates a period of relative neutrality in overall debt levels after the earlier reduction phase.

In summary, the company significantly reduced its total debt between 2020 and 2022, favoring lower long-term liabilities and exercising some control over short-term borrowings after an initial peak. The subsequent years demonstrate a period of stabilization with modest increases in both short-term and long-term obligations, suggesting a balanced approach towards maintaining leverage while managing liquidity requirements.