SLB N.V. (NYSE:SLB)

Current Income Tax Expense

The current income tax expense shows a generally increasing trend over the five-year period. Starting from $436 million in 2020, the expense rose consistently each year, reaching $1,134 million by 2024. This upward trajectory suggests a growing tax liability based on taxable income or changes in tax regulations impacting current obligations.

Deferred Income Tax Expense

The deferred income tax expense exhibits significant volatility throughout the period. In 2020, there was a large deferred tax benefit of $1,248 million, which drastically decreased to a minor benefit of $31 million in 2021 and slightly more to $39 million in 2022. In 2023, the deferred tax expense shifted to a positive $28 million, indicating a deferred tax liability, before reverting to a benefit of $41 million in 2024. These fluctuations might reflect changes in temporary differences, tax rate adjustments, or recognition of deferred tax assets and liabilities over time.

Total Tax Expense (Benefit)

The combined tax expense, representing the net effect of current and deferred taxes, follows a clear progression from a benefit to increasing expenses. In 2020, the company reported a total tax benefit of $812 million, influenced heavily by the large deferred tax benefit. From 2021 onwards, the total tax expense becomes positive, with figures increasing from $446 million in 2021 to $1,093 million in 2024. This transition and growth highlight a substantial increase in the overall tax burden over time, primarily driven by higher current tax expenses despite volatile deferred tax amounts.

Overall Insights

The analysis reveals a notable shift from a significant net tax benefit in 2020 to sustained and growing tax expenses in subsequent years. The large deferred tax benefit in 2020 stands out as an exceptional item affecting that year’s tax profile. The steady increase in current tax expense suggests rising taxable income or changes in tax strategy or legislation. The instability in deferred tax expenses indicates fluctuating temporary timing differences or reassessments of deferred tax positions. Together, these patterns point to a dynamic tax environment with considerable impact on the company's effective tax rate across the reported periods.

The analysis of the given financial data reveals several notable trends regarding the company's tax-related metrics over the five-year period ending in 2024.

US federal statutory tax rate

The US federal statutory tax rate remained constant at 21% throughout the entire period from 2020 to 2024. This stability suggests no legislative or policy changes affecting the statutory tax rate applicable to the company during these years.

Charges and credits

The charges and credits exhibit variability across the years, with a negative charge of -14% in 2020, no reported charges or credits in 2021, a minor negative charge of -1% in 2022, and no figures again for 2023 and 2024. This inconsistency may reflect episodic tax adjustments or reclassifications impacting the effective tax expense.

Change in valuation allowance

The valuation allowance changes were recorded as -2% in 2022 and -1% in 2024, with no data for other years. This suggests periodic adjustments to deferred tax assets, possibly in response to changes in expected future taxable income or estimates of realizability.

Other

The category labeled "Other" presents minor negative percentages in 2021 (-2%), 2023 (-2%), and 2024 (-1%). These relatively small fluctuations indicate ancillary tax effects or miscellaneous adjustments that slightly reduce the overall tax burden during those years.

Effective tax rate

The effective tax rate demonstrates a significant increase from a low of 7% in 2020 to 19% in 2021, and it maintains a steady range between 18% and 19% through 2024. This pattern indicates that despite a stable statutory tax rate, the actual tax expense relative to income increased markedly after 2020 and then stabilized at a higher level. The increase may be associated with the reduction of charges and credits or other adjustments that diminished the benefit of such items in subsequent years.

In summary, while the statutory tax rate remained unchanged, the effective tax rate experienced a notable upward shift after 2020, stabilizing near 19%. Variations in charges, credits, and valuation allowances appear to have influenced this change, reflecting the complex interplay between statutory rates and actual tax expense as affected by specific financial and operational circumstances.

The financial data reveals several notable trends and shifts in the company’s asset and liability accounts over the five-year period.

Intangible Assets

The intangible assets have consistently remained in the negative range, indicating liabilities or amortization exceeding capitalized values. The amount decreased slightly from -881 million USD in 2020 to -788 million USD in 2024, suggesting some reduction in intangible asset impairment or amortization but still reflecting a significant negative balance.

Net Operating Losses

Net operating losses demonstrate a strong downward trend, starting at 421 million USD in 2020 and declining steadily to 123 million USD by 2024. This decrease indicates a reduction in accumulated losses that may positively impact future taxable income and cash flows.

Fixed Assets, Net

Net fixed assets values show volatility with a decrease from 151 million USD in 2020 to 101 million USD in 2022, followed by a recovery and increase to 190 million USD in 2023 before slightly declining to 173 million USD in 2024. This pattern may reflect asset disposals or write-downs followed by acquisitions or capital expenditures.

Research and Development Credits

Research and development credits have increased from 96 million USD in 2020 to a peak of 162 million USD in 2023, with a slight dip to 158 million USD in 2024. The overall upward trend suggests enhanced investment in R&D activities and an increasing ability to capitalize on tax credits related to innovation.

Capitalized Research and Development Costs

Capitalized R&D costs were recorded starting in 2022 at 72 million USD and rose significantly to 216 million USD by 2024. This growth indicates a strategic shift towards capitalizing more development expenditures, which could enhance asset bases and future amortization expenses rather than immediate expenses.

Pension and Other Postretirement Benefits

Obligations related to pensions and postretirement benefits decreased steadily from -31 million USD in 2020 to -62 million USD in 2024, with the largest negative value in 2021 at -136 million USD. The trend suggests improvements or settlements in postretirement liabilities over time, thus reducing future risks associated with these obligations.

Other, Net

The "Other, net" category exhibits a declining trend from 225 million USD in 2020 to 77 million USD in 2023, with a partial recovery to 113 million USD in 2024. This fluctuation could point to variations in miscellaneous assets or liabilities impacting the company's different balances.

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets and liabilities have fluctuated significantly, starting with a small negative value (-19 million USD) in 2020, reaching a trough at -140 million USD in 2023, and closing at -67 million USD in 2024. This volatility highlights changes in tax timing differences, possibly influenced by variations in taxable income projections or accounting estimates related to deferred taxes.

Overall, the data indicates a company managing a transition in its asset base, especially with regard to research and development capitalization, alongside a reduction in net operating losses and pension obligations. The fluctuations in deferred tax accounts and other net balances warrant close attention to understand further tax planning and other miscellaneous balances implications.

The analysis of noncurrent deferred tax liabilities over the reported periods reveals notable fluctuations in the balance.

Trend Analysis

The value of noncurrent deferred tax liabilities started at US$19 million as of December 31, 2020. There was a significant increase to US$94 million by the end of 2021, representing a nearly fivefold rise within one year.

Following this peak, the liabilities decreased to US$61 million by the end of 2022. This reduction indicates a partial reversal or adjustment of previously recognized deferred tax liabilities.

In 2023, there was another substantial increase to US$140 million, marking the highest figure in the five-year span. This suggests additional deferred tax liabilities were recognized or revalued during the period.

Lastly, the value declined notably to US$67 million in 2024, indicating further changes that reduced the deferred tax liabilities by more than half compared to the previous year.

Insights

The observed volatility in noncurrent deferred tax liabilities may be attributed to changes in tax regulations, timing differences between accounting and tax treatment of assets or liabilities, or adjustments resulting from asset revaluations or tax planning strategies.

The repeated sharp increases followed by steep decreases suggest that the company has undergone periods of significant tax position adjustments, potentially reflecting evolving interpretations of tax laws or restructuring activities.

Total Liabilities

The total liabilities demonstrated a general declining trend from 2020 to 2022, decreasing from approximately 29,945 million to 25,146 million US$. This reduction suggests an improvement in the company's leverage or a possible repayment or restructuring of debt during this period. However, from 2022 onwards, there was a slight increase, with liabilities rising to about 26,598 million in 2023 and remaining nearly stable at 26,585 million by the end of 2024. The adjusted liabilities values closely mirror the reported figures, exhibiting minor downward adjustments but following the same overall trend.

Stockholders' Equity

Stockholders' equity increased steadily each year throughout the five-year period. The reported equity rose from approximately 12,071 million US$ in 2020 to 21,130 million US$ in 2024, reflecting a sustained strengthening of the company’s net assets and potentially improved profitability or retained earnings accumulation. Adjusted equity figures are slightly higher each year than reported, reinforcing the positive growth trend without significant deviations.

Net Income (Loss) Attributable to SLB

Net income showed a significant turnaround during the period under review. Initially, a substantial loss was recorded in 2020, nearly -10,518 million US$. This shifted sharply to positive figures in 2021, with net income climbing to 1,881 million US$. Subsequent years saw continued growth, with net income increasing to 3,441 million in 2022, 4,203 million in 2023, and 4,461 million in 2024. The adjusted net income follows this pattern closely but with slightly lower negative and positive values in some years, indicating minor adjustments for deferred income tax effects or other items. Overall, the data depicts a company recovering from heavy losses to steady profitability.

General Insights

The overall financial data reveal a strengthening balance sheet, characterized by decreasing liabilities and increasing equity. The marked improvement in net income further supports the notion of enhanced operational performance or financial management. The close alignment of reported and adjusted figures indicates that deferred income taxes and other adjustments have a relatively small but consistent impact across the analyzed years, not altering the underlying financial trends materially.

The analysis of financial ratios over the five-year period reveals a notable improvement in profitability and a gradual reduction in financial leverage for the company. Both reported and adjusted figures exhibit consistent trends, indicating stability and reliability in the financial adjustments made for deferred taxes.

Net Profit Margin

The reported net profit margin shows a substantial turnaround from a significant loss of -44.57% in 2020 to positive margins ranging between 8.2% and 12.68% in the subsequent years, plateauing around 12.3% by 2024. The adjusted net profit margin follows a similar trajectory, starting slightly lower at -49.85% in 2020, then stabilizing near the reported margins with minor variations. This improvement suggests effective cost control and revenue generation, contributing to enhanced operational profitability.

Financial Leverage

Both reported and adjusted financial leverage ratios demonstrate a consistent downward trend from 3.52 in 2020 to 2.32 by 2024. The gradual decline indicates a strategic reduction in the company’s reliance on debt relative to equity, enhancing financial stability and potentially reducing financial risk over time.

Return on Equity (ROE)

ROE exhibits a dramatic change from highly negative figures in 2020 (-87.13% reported and -97.32% adjusted) to strong positive returns exceeding 20% by 2023 and 2024. The adjusted ROE closely mirrors reported ROE, reflecting the adjusted net income's influence. This recovery and growth in equity returns denote effective management of shareholders' investments and profitable utilization of capital.

Return on Assets (ROA)

ROA values similarly transition from significant negative returns in 2020 (-24.79% reported and -27.73% adjusted) to steadily increasing positive levels, reaching approximately 9% by 2024. The steady rise in ROA highlights improved efficiency in asset utilization to generate earnings.

Overall, the financial data depict a company that has successfully navigated from severe losses toward sustained profitability and improved financial health. The alignment between reported and adjusted metrics throughout the period reinforces the credibility of the adjusted figures in reflecting the company's operational performance after accounting for income tax effects.

The financial performance over the analyzed period demonstrates a notable recovery and growth trend following a significant loss in the initial year. Examining the reported net income attributable to the company reveals a substantial turnaround from a large negative value to consistently positive figures in subsequent years.

Net Income Trends

The reported net income (loss) showed a marked improvement from a loss of US$10,518 million at the end of 2020 to positive results thereafter, increasing to US$1,881 million in 2021. This upward trajectory continued steadily with net income rising to US$3,441 million in 2022, US$4,203 million in 2023, and US$4,461 million projected for 2024, indicating sustained profitability growth.

Adjusted Net Income

The adjusted net income attributable to the company closely mirrors the reported net income pattern with slight variations. The adjusted figures also transitioned from a deep loss of US$11,766 million in 2020 to profitability of US$1,850 million in 2021, with continued upward movement to US$3,402 million in 2022, US$4,231 million in 2023, and an estimated US$4,420 million in 2024. This demonstrates consistency in earnings after accounting for specific adjustments, suggesting underlying operational improvements.

Profit Margin Analysis

The reported net profit margin shows a significant shift from a highly negative margin of -44.57% in 2020 to positive single-digit and double-digit margins subsequently. The margin increased to 8.2% in 2021, rising approximately to 12.25% in 2022, and maintained a slightly upward trend to 12.68% in 2023 before marginally declining to 12.29% in 2024. This indicates enhanced efficiency and profitability in revenue generation over time.

The adjusted net profit margin follows a similar pattern, starting at -49.85% in 2020. It improves to 8.07% in 2021 and rises to 12.11% in 2022, attaining a peak of 12.77% in 2023, before slightly declining to 12.18% in 2024. The close alignment of the adjusted margins with reported margins underscores consistent operational performance after adjustments.

Overall, the data reflects a robust recovery and consistent profitability improvements across the periods analyzed. Both reported and adjusted metrics confirm that the company has moved from a significant loss situation to stable and improving earnings, demonstrating success in overcoming prior challenges and achieving operational efficiency.

The financial data reveals several notable trends over the five-year period from 2020 to 2024. Both the reported and adjusted total stockholders' equity exhibit a consistent upward trajectory, indicating a strengthening equity base.

Total Stockholders’ Equity

The reported total stockholders' equity increased steadily from US$12,071 million in 2020 to US$21,130 million in 2024. This represents a cumulative growth of approximately 75%. The adjusted figures follow a similar pattern, rising from US$12,090 million to US$21,197 million over the same period. These parallel movements in reported and adjusted equity suggest that deferred income tax adjustments have a minimal effect on the overall equity position, maintaining consistency in financial reporting.

Financial Leverage

Both reported and adjusted financial leverage ratios declined progressively from 2020 through 2024. The reported leverage decreased from 3.52 to 2.32, while the adjusted leverage dropped from 3.51 to 2.31. This downward trend indicates a reduction in reliance on debt financing relative to equity. It reflects an improvement in the company’s capital structure, potentially leading to lower financial risk and increased stability.

Comparative Analysis

The close alignment between reported and adjusted figures across all items suggests consistent accounting treatments with minor adjustments for deferred income taxes. The progressive increase in stockholders' equity combined with decreasing leverage ratios indicates a strengthening financial position, implying effective equity growth and debt management strategies over the observed period.

The financial data reveals a marked improvement in the company's profitability and equity position over the observed periods. Initially, the company experienced significant net losses, but subsequent years show a clear transition to sustained profitability, with both reported and adjusted net incomes increasing steadily.

Net Income Trends

The reported net income improved sharply from a substantial loss of approximately US$10.5 billion to positive figures, ascending to over US$4.4 billion by the latest period. Adjusted net income follows a similar trajectory, starting from a larger loss of approximately US$11.8 billion and reaching around US$4.4 billion in the same timeframe. This reflects strong recovery and enhancement in earnings performance.

Stockholders’ Equity Development

Stockholders’ equity showed consistent growth throughout the periods. Reported equity rose from roughly US$12.1 billion to over US$21 billion, indicating capital accumulation and potentially profitable retained earnings. Adjusted equity figures closely mirror this pattern, confirming the robustness of the equity base after adjustments.

Return on Equity (ROE) Analysis

ROE displayed a significant turnaround from deeply negative returns (-87.13% reported, -97.32% adjusted) to positive and stable levels above 20% in recent years. This reflects improved efficiency in generating profits from shareholders’ equity. The alignment between reported and adjusted ROE percentages suggests consistency in profitability metrics post-adjustment.

Overall, the data illustrates a business that has transitioned from a period of considerable losses to one characterized by solid profitability and strengthened equity position. The consistency between reported and adjusted figures indicates reliability in the adjustments made for deferred income taxes. The increasing ROE further underpins the enhanced shareholder value creation during the timeline.

The analysis of the financial data reveals a significant improvement in the company's profitability and asset efficiency over the observed periods. Initially, the reported net income attributable to the company was substantially negative, indicating a considerable loss in the year ending December 31, 2020. However, there is a marked positive shift beginning in 2021, with net income turning positive and continuing a steady upward trajectory through to 2024.

Similarly, the adjusted net income follows this positive trend with minor variations. The adjusted figures are consistently slightly lower than the reported values, reflecting differences due to tax adjustments, but they mirror the overall upward trend in profitability.

Regarding the returns on assets (ROA), both reported and adjusted ROA exhibit a comparable pattern. The company experienced a significantly negative ROA in 2020, which improved to a positive return by 2021 and continued to grow annually through 2024. Notably, the adjusted ROA values are modestly lower than the reported ones but show the same consistent improvement, underscoring enhanced operational efficiency and asset utilization over time.

Overall, the financial data indicates a recovery phase starting in 2021, with continual growth in net income and asset returns up to 2024. This trend suggests effective management actions and improved operational performance contributing to financial stability and profitability growth.

Net Income Trends

Substantial loss in 2020 followed by consistent profitability gains from 2021 to 2024.

Adjusted net income slightly lower than reported but paralleling the upward trend.

Return on Assets (ROA) Trends

Negative ROA in 2020 transitioning to positive and growing returns through 2024.

Adjusted ROA marginally below reported ROA, both demonstrating steady improvement.

Overall Financial Insights

Significant recovery phase observed in 2021, with continuing improvements in income and efficiency.

Indications of improved asset utilization and operational performance over the five-year period.