SLB N.V. (NYSE:SLB)

The analysis of the annual financial data reveals several key trends related to the company's goodwill and intangible assets over the five-year period.

Goodwill

The goodwill value showed a relatively stable pattern from 2020 to 2022, fluctuating slightly around 12,980 US$ million. Beginning in 2023, there was a noticeable increase, reaching 14,084 US$ million and further rising to 14,593 US$ million in 2024. This upward trajectory suggests acquisitions or revaluations contributing positively to goodwill in the most recent years.

Customer relationships

The value of customer relationships decreased modestly from 1,744 US$ million in 2020 to 1,680 US$ million in 2022. However, it rebounded to 1,887 US$ million in 2023 and remained stable in 2024. This pattern may indicate initial amortization or impairment followed by new or renewed customer contracts increasing its value.

Technology/technical know-how

This category exhibited a slight decline from 1,284 US$ million in 2020 to 1,264 US$ million in 2021, followed by stabilization and then a clear increase beginning in 2023, reaching 1,588 US$ million in 2024. The rising trend in recent years implies investment in technological capabilities or acquisition of new technical assets.

Trade names

Trade names demonstrated very little variation, maintaining a value just below 800 US$ million across the five years. This stable trend indicates no significant changes in brand valuation or impairment related to trade names during the period.

Other intangible assets

The "Other" category showed a steady increase from 1,488 US$ million in 2020 to 1,604 US$ million in 2024, with a minor dip in 2023. This overall growth suggests gradual accumulation or recognition of additional intangible assets not categorized elsewhere.

Intangible assets, gross book value

The gross book value of intangible assets remained relatively stable, with minor fluctuations between 5,240 US$ million and 5,874 US$ million. Notably, a rise was observed in 2023 and 2024, indicating new additions or revaluations.

Accumulated amortization

This figure increased steadily in magnitude from -1,828 US$ million in 2020 to -2,862 US$ million in 2024, reflecting ongoing amortization of intangible assets over time, consistent with typical accounting practices for these asset types.

Intangible assets, net book value

The net book value of intangible assets declined from 3,455 US$ million in 2020 to 2,992 US$ million in 2022, followed by a temporary increase to 3,239 US$ million in 2023 before decreasing again to 3,012 US$ million in 2024. This pattern corresponds with the trends in gross book value and accumulated amortization, indicating periods of asset additions partially offset by amortization.

Goodwill and intangible assets combined

The combined total experienced a slight decrease from 16,435 US$ million in 2020 to 15,974 US$ million in 2022, then a significant increase in 2023 to 17,323 US$ million, and a continued rise to 17,605 US$ million in 2024. This overall increase points to a growing investment or acquisition activity in intangible resources, bolstering the company's asset base.

In summary, the data reflect a stable to growing base of goodwill and intangible assets over the period, with notable increases after 2022, particularly in goodwill, technology know-how, and customer relationships. The steady increase in accumulated amortization aligns with expected asset usage over time. The combined increase in goodwill and intangible assets in 2023 and 2024 suggests recent strategic initiatives impacting the company's intangible asset portfolio positively.

Total Assets

The reported total assets demonstrate a generally upward trend from 42,434 million US dollars at the end of 2020 to 48,935 million US dollars by the end of 2024. There is a slight decline observed in 2021, followed by consistent growth thereafter. Adjusted total assets, which remove the effect of goodwill and other intangibles, also follow a similar upward trajectory, increasing from 29,454 million US dollars in 2020 to 34,342 million US dollars in 2024. This reflects an overall growth in asset base when excluding intangible adjustments, with a modest dip in 2021 but recovery and steady increases in subsequent years.

Stockholders’ Equity

The reported stockholders’ equity shows a strong growth trend, nearly doubling from 12,071 million US dollars in 2020 to 21,130 million US dollars in 2024. This indicates increasing net worth attributable to shareholders over the period. However, adjusted stockholders' equity, which excludes goodwill effects, begins with a negative value of -909 million US dollars in 2020, turning positive in 2021 and then climbing steadily to 6,537 million US dollars by 2024. This transition from negative to positive adjusted equity suggests an improvement in the underlying tangible equity position of the company.

Net Income Attributable to SLB

Reported net income exhibits significant volatility at the start of the period with a large loss of 10,518 million US dollars in 2020. Subsequently, the company records positive net income in all following years, rising consistently from 1,881 million US dollars in 2021 to 4,461 million US dollars in 2024. Adjusted net income, which excludes goodwill-related impacts, parallels the reported figures from 2021 onwards but shows a smaller loss in 2020 (-7,448 million US dollars), indicating that adjustments reduce the magnitude of the initial loss. The consistent positive trend in net income over the last four years reflects improving operational profitability.

Summary of Financial Trends

The company displays improvement in both balance sheet strength and profitability from 2021 through 2024. Asset growth, both reported and adjusted for goodwill, is steady and positive. Equity metrics show a marked recovery from negative adjusted equity to a positive and increasing equity base. Profitability transitions from a heavy loss in 2020 to sustained positive income thereafter. Adjustments related to goodwill have a material effect on equity and net income in 2020 but become less pronounced in the following years, highlighting enhancing operational fundamentals outside intangible asset adjustments.

Net Profit Margin

The reported net profit margin exhibited a significant turnaround from a negative margin of -44.57% in 2020 to positive margins above 8% in subsequent years, stabilizing around 12% from 2022 to 2024. The adjusted net profit margin mirrors this trajectory closely, starting at -31.56% in 2020 and matching reported figures from 2021 onwards, indicating a strong recovery and sustained profitability.

Total Asset Turnover

The reported total asset turnover showed a gradual improvement over the period, increasing from 0.56 in 2020 to 0.74 by 2024. The adjusted total asset turnover consistently exceeded the reported figures, starting at 0.8 in 2020 and rising steadily to 1.06 in 2024. This reflects enhanced efficiency in generating revenue from assets when goodwill adjustments are considered.

Financial Leverage

Reported financial leverage steadily declined from 3.52 in 2020 to 2.32 in 2024, signaling a reduction in reliance on debt financing. Contrastingly, adjusted financial leverage showed a peak at 14.16 in 2021 before decreasing to 5.25 in 2024, indicating initially high leverage when adjusted for goodwill, but an improving trend towards lower leverage over time.

Return on Equity (ROE)

The reported ROE demonstrated a drastic improvement, moving from a negative return of -87.13% in 2020 to a positive and growing return exceeding 21% by 2024. The adjusted ROE, which was not available for 2020, peaked at an exceptionally high 93.4% in 2021 before gradually declining to 68.24% in 2024. Although adjusted ROE remains substantially higher than reported ROE, it shows a decreasing trend, suggesting normalization after an initial peak.

Return on Assets (ROA)

Reported ROA improved steadily from -24.79% in 2020 to above 9% in 2024, reflecting enhanced asset utilization and profitability. The adjusted ROA followed a similar pattern but with consistently higher values, starting comparatively lower at -25.29% in 2020 but increasing sharply to nearly 13% in 2024. The adjusted figures highlight stronger asset performance once goodwill is accounted for.

Net Income Trends

The reported net income attributable to the company showed a significant improvement from a substantial loss in 2020 to consistent positive gains in subsequent years. Specifically, the loss of approximately $10.5 billion in 2020 shifted to profits of $1.9 billion in 2021, increasing to $3.4 billion in 2022, and further rising to $4.2 billion and $4.5 billion in 2023 and 2024, respectively. The adjusted net income follows the same trajectory, with the 2020 loss moderated to about $7.4 billion but the figures from 2021 onwards matching the reported profit values exactly, indicating that adjustments primarily affected the 2020 results.

Net Profit Margin Analysis

The reported net profit margin reflected a dramatically negative position in 2020, registering -44.57%, before improving to a positive margin of 8.2% in 2021. This margin continued to progress upward, reaching 12.25% in 2022, then slightly increasing to 12.68% in 2023, and marginally declining to 12.29% in 2024. Adjusted net profit margins show a similar pattern, with the 2020 margin less negative at -31.56%, followed by identical figures to the reported margins from 2021 onwards.

Overall Insights

The period examined demonstrates a clear turnaround in profitability, moving from heavy losses in 2020 to sustained profitability from 2021 to 2024. The adjustment for goodwill and related items mainly influenced the extent of losses in 2020, which suggests significant one-time impairments or write-downs during that year. From 2021 onwards, the alignment of reported and adjusted figures indicates stable operational performance without similar large-scale adjustments. The net profit margins stabilize above 12% in the later years, signaling effective cost management and revenue generation strategies that have strengthened the company's financial position over time.

Total Assets

The reported total assets of the company exhibit a generally increasing trend over the analyzed period. Starting from $42,434 million at the end of 2020, the figure slightly declined in 2021 to $41,511 million but then steadily rose to $43,135 million in 2022, $47,957 million in 2023, and $48,935 million in 2024. The adjusted total assets, which account for goodwill, follow a similar upward trajectory, increasing from $29,454 million in 2020 to $34,342 million in 2024, with a slight dip in 2021 before resuming an upward trend.

Total Asset Turnover

The reported total asset turnover ratio shows consistent improvement over the five-year span, rising from 0.56 in 2020 to 0.74 in 2024. This suggests enhanced efficiency in generating revenue from the reported asset base. Similarly, the adjusted total asset turnover ratio, which excludes goodwill adjustments, also shows a steady rise from 0.80 in 2020 to 1.06 in 2024. The higher adjusted ratios compared to reported figures indicate that the company's core operating assets are being utilized more effectively to generate sales, with tangible assets contributing positively to operational efficiency.

Overall Analysis

The company’s asset base expanded moderately during the period, with both reported and adjusted total assets growing, especially after 2021. Simultaneously, the total asset turnover ratios, on both reported and adjusted bases, improved year over year, indicating better utilization of assets in driving revenues. The notably higher values in adjusted asset turnover underscore the significance of goodwill in the asset structure and imply that excluding goodwill yields a clearer picture of asset efficiency. This pattern suggests a focus on optimizing operational asset productivity and possibly an improved asset management strategy over time.

The analysis of the financial data over the five-year period reveals distinct trends in the reported and goodwill adjusted figures for total assets, stockholders’ equity, and financial leverage.

Total Assets

Reported total assets show a general upward trend, increasing from 42,434 million US dollars in 2020 to 48,935 million US dollars in 2024. The adjusted total assets, which exclude goodwill, follow a similar increasing pattern, rising from 29,454 million US dollars in 2020 to 34,342 million US dollars in 2024. The adjusted figures are consistently lower than the reported figures, reflecting the exclusion of goodwill from the assets.

Stockholders’ Equity

The reported total stockholders’ equity demonstrates a steady growth over the period, increasing from 12,071 million US dollars in 2020 to 21,130 million US dollars in 2024. In contrast, the adjusted stockholders’ equity exhibits negative value in 2020 (-909 million US dollars), which turns positive in 2021 (2,014 million US dollars) and continues to increase through 2024, reaching 6,537 million US dollars. This indicates significant adjustments related to goodwill impairments or other factors affecting equity in the early part of the period, with subsequent improvements over time.

Financial Leverage

Reported financial leverage, defined as the ratio of total assets to stockholders’ equity, shows a declining trend from 3.52 in 2020 to 2.32 in 2024. This decline suggests an improvement in capitalization, with equity growing at a faster rate than assets. Adjusted financial leverage, on the other hand, is unavailable for 2020 but begins at a very high level of 14.16 in 2021, substantially decreasing to 5.25 by 2024. Despite the reduction, the adjusted leverage remains significantly higher than the reported leverage, implying a much higher relative debt load when goodwill is excluded from equity and assets.

Overall, the data indicate consistent asset growth accompanied by increasing equity, leading to reduced financial leverage on a reported basis. The adjusted figures, however, highlight the considerable impact of goodwill, which inflates reported equity and assets and thus masks the higher underlying leverage and weaker equity base before adjustments. The improvements over time in adjusted equity and leverage suggest effective management of goodwill and a strengthening balance sheet after removing intangible asset effects.

The financial data reveals distinct trends in reported and adjusted financial metrics over the five-year period ending December 31, 2024. Key performance indicators such as net income, stockholders' equity, and return on equity (ROE) exhibit notable changes, highlighting the impact of goodwill adjustments on the company's reported figures.

Net Income (Loss) Attributable to SLB

The reported net income shifted from a substantial loss of $10,518 million in 2020 to consistent profitability thereafter, reaching $4,461 million by 2024. This represents a significant turnaround and steady growth in profitability across the subsequent years. The adjusted net income, which accounts for goodwill adjustments, mirrors the reported net income from 2021 onwards but indicates a less severe loss in 2020 at $7,448 million. This suggests that goodwill adjustment favorably modified the 2020 net loss figure while aligning with reported profits in later years.

Total SLB Stockholders’ Equity

The reported stockholders' equity increased from $12,071 million in 2020 to $21,130 million in 2024, showing a consistent upward trend reflecting improved net asset value. Conversely, the adjusted stockholders' equity figures are substantially lower in 2020, with a negative value of $909 million, but show strong recovery and growth each year, reaching $6,537 million by 2024. This disparity indicates that goodwill adjustments had a significant negative impact on equity at the start of the period, yet the company improved adjusted equity steadily in subsequent years.

Return on Equity (ROE)

The reported ROE transitioned from a deeply negative rate of -87.13% in 2020 to positive and progressively improving values, culminating in 21.11% in 2024. This pattern reflects the company’s recovery from a loss-generating position to efficient capital utilization. The adjusted ROE data, available from 2021 onwards, presents significantly higher values than the reported ROE, starting at 93.4% in 2021 and gradually declining but remaining high at around 68% in 2024. This suggests that, when goodwill adjustments are considered, the company demonstrated exceptional returns on adjusted equity, though the declining trend may indicate growing equity base or changes in profitability.

Overall, the trends illustrate a recovery from significant financial losses in 2020 to sustained profitability and equity growth through 2024. The adjusted figures, reflecting goodwill considerations, reveal initially more adverse equity positions and higher returns on equity in later years compared to reported data. These patterns imply enhanced financial health and operational efficiency, tempered by the accounting effects of goodwill on reported capital and profitability measures.

The financial data reveals significant improvements in profitability over the observed period from 2020 to 2024. Initially, the company experienced a substantial net loss, with reported net income attributable to SLB at negative US$10,518 million in 2020. However, there was a notable turnaround as net income grew positively, reaching US$4,461 million by 2024. The adjusted net income follows a similar pattern, starting from a lesser loss of US$7,448 million in 2020 and converging with the reported figures from 2021 onward, demonstrating consistent profitability gains.

The total assets of the company show a moderate upward trend when reported values are considered, increasing from US$42,434 million in 2020 to US$48,935 million in 2024. However, the adjusted total assets, which presumably exclude goodwill or other intangible assets, are consistently lower and also grow from US$29,454 million to US$34,342 million over the same period. The gap between reported and adjusted total assets narrows slightly but remains significant, indicating a substantial proportion of assets potentially related to goodwill or similar adjustments.

Return on Assets (ROA) figures reflect the improvement in profitability with both reported and adjusted measures showing positive trends after 2020. The reported ROA starts at -24.79% in 2020 and improves steadily to 9.12% by 2024. Adjusted ROA presents a more optimistic picture, increasing from -25.29% to 12.99%, indicating that the company’s core asset efficiency, excluding certain intangible assets, is stronger and improving more rapidly.

Profitability Trends

There is a clear recovery from significant losses in 2020 to sustained profitability from 2021 onward, with net income increasing steadily each year.

Asset Base

Total assets grew moderately, but adjusted total assets suggest that a considerable portion of the company’s reported assets might be related to goodwill or intangibles, as evidenced by the lower adjusted figures.

Return on Assets

Both reported and adjusted ROA improved significantly, with adjusted ROA indicating stronger operational asset returns when excluding certain asset components.

Overall Financial Health

The data indicates a positive trajectory in financial health, reflecting enhanced profitability and improved utilization of assets over the five-year period.