Analysis of Inventory
Inventory Disclosure
SLB N.V., balance sheet: inventory
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall, the value of inventories exhibited a general upward trend between 2021 and 2025. However, the composition of those inventories, broken down into raw materials, work in progress, and finished goods, reveals more nuanced patterns. A period of consistent growth was followed by a stabilization and then a renewed increase towards the end of the analyzed period.
- Raw Materials & Field Materials
- The value of raw materials and field materials increased steadily from US$1,594 million in 2021 to US$2,550 million in 2025. This represents a cumulative increase of approximately 60% over the five-year period, indicating a consistent need for increased input materials. The rate of increase appears relatively stable year-over-year.
- Work in Progress
- Work in progress demonstrated the most significant proportional increase among the inventory components. Starting at US$425 million in 2021, it rose to US$797 million in 2025, representing an 87.5% increase. The growth was particularly pronounced between 2021 and 2023, suggesting a potential expansion in production activity or longer production cycles during that timeframe. The growth rate slowed between 2023 and 2025.
- Finished Goods
- Finished goods inventory showed a more volatile pattern. It increased from US$1,253 million in 2021 to US$1,367 million in 2022, then decreased to US$1,202 million in 2023 before rising substantially to US$1,685 million in 2025. This fluctuation could be attributed to changes in sales demand, production efficiency, or deliberate inventory management strategies. The significant increase in 2025 suggests a build-up of finished goods, potentially in anticipation of future demand or due to a slowdown in sales.
- Total Inventories
- Total inventories increased from US$3,272 million in 2021 to US$5,032 million in 2025, representing a 54% increase overall. While there was a slight decrease in total inventory value between 2023 and 2024 (from US$4,387 million to US$4,375 million), the final year showed a substantial increase, driven primarily by the rise in finished goods and raw materials. This suggests a potential shift in inventory strategy or a response to changing market conditions in 2025.
The combined trends indicate a growing business with increasing material needs and production activity. The fluctuations in finished goods warrant further investigation to determine the underlying causes and potential implications for working capital management.
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