SLB N.V. (NYSE:SLB)

The financial data of the company from 2005 to 2024 demonstrates notable fluctuations in revenue and net income, reflecting varying business conditions and profitability levels throughout the period.

Revenue Trends

The revenue exhibits an overall upward trend from 2005, growing from approximately $14.3 billion to a peak near $48.6 billion in 2014. This significant increase indicates a period of robust expansion over the first decade. However, revenue subsequently declines markedly, dropping to around $27.8 billion in 2016, followed by a moderate recovery reaching approximately $33.2 billion by 2019. Another dip occurs in 2020 and 2021, with revenue falling below $24 billion, which may reflect external economic or industry challenges. The years 2022 through 2024 show a consistent revenue increase once again, reaching over $36 billion in 2024, suggesting a strong recovery and growth momentum during these recent years.

Net Income (Loss) Trends

Net income attributable to the company follows a more volatile pattern compared to revenue. Early years up to 2013 show generally positive and rising net income, hitting a high point of approximately $6.7 billion in 2013. This is followed by a sharp decline with net losses reported in 2016 and 2017, registering negative figures close to -$1.7 billion. The return to profitability begins in 2018 with a positive margin, but a severe loss is again recorded in 2019 and 2020, with net income losses exceeding $10 billion both years. This dramatic downturn indicates major challenges impacting profitability. Recovery is evident from 2021 onward, with net income moving back into positive territory and growing steadily up to around $4.5 billion in 2024, reflecting improved operational or market conditions.

Relationship Between Revenue and Net Income

The correlation between revenue and net income is not direct, as periods of revenue growth do not always coincide with improved profitability. For instance, despite revenue peaking in 2014, net income declines significantly thereafter, including periods of substantial losses. This divergence suggests that factors such as cost control, one-time charges, or market dynamics might have adversely affected net income independent of revenue trends. The simultaneous recovery in both revenue and net income after 2020 indicates that improvements in both top-line sales and profitability metrics were achieved more recently.

Overall Insights

The financial data reflect a company experiencing growth phases punctuated by periods of financial distress. The volatility in net income despite fluctuating revenues indicates operational or external challenges impacting efficiency or expenses. The strong revenue base in recent years combined with a return to positive net income suggests an ongoing phase of stabilization and growth. Continued focus on cost management and revenue expansion will be critical to sustaining profitable performance going forward.

The analysis of the financial data over the period from 2005 to 2024 reveals several notable trends in current assets and total assets.

Current Assets

Current assets exhibit a general upward trend between 2005 and 2013, increasing from 8,554 million USD in 2005 to a peak of 26,225 million USD in 2013. This growth period reflects consistent expansion in liquid and short-term assets.

After reaching the peak in 2013, current assets experience a downward correction, declining to 15,530 million USD by 2019. This reduction could indicate asset liquidation, changes in working capital management, or strategic shifts in asset allocation.

Following 2019, there is a mild recovery, with current assets rising to 18,570 million USD by 2024. Although this recent increase does not match the peak levels of 2013, it suggests some stabilization or renewed investment in current asset categories.

Total Assets

Total assets show a strong growth trajectory from 18,077 million USD in 2005 to a high of 77,956 million USD in 2016, reflecting significant asset accumulation over the eleven-year span. This increase is more pronounced than that of current assets, indicating expansion in long-term or fixed assets as well.

After peaking in 2016, total assets decline sharply to 41,511 million USD by 2021, marking a substantial contraction. This significant reduction may be attributed to divestitures, impairments, devaluations, or shifts in strategic focus that reduce asset holdings.

From 2021 onwards, total assets show a moderate rebound, increasing to 48,935 million USD in 2024. This rebound suggests a phase of asset rebuilding or new capital investments after earlier reductions.

Overall Observations

The disparity in the growth and contraction patterns between current assets and total assets indicates differing dynamics in short-term and long-term asset management. While current assets experience relative stability after initial growth and correction phases, total assets undergo more dramatic fluctuations, particularly marked by a peak in 2016 and a subsequent decline.

These trends suggest changes in strategic asset management, potentially involving divestment of fixed assets or restructuring efforts during the downturn period, followed by some recovery in recent years. The data underscores the importance of asset portfolio optimization and adaptive financial strategies in response to changing business conditions.

The analysis of the financial data over the period reveals several notable trends in the company's liabilities and equity structure.

Current Liabilities

Current liabilities steadily increased from 5,515 million USD in 2005 to a peak of 15,059 million USD in 2016. Following this peak, the figures fluctuated moderately, falling to 13,395 million USD by 2023 and slightly decreasing to 12,811 million USD in 2024. This pattern indicates that although there was significant short-term debt accumulation until 2016, the company managed to stabilize and reduce current liabilities somewhat in more recent years.

Total Liabilities

Total liabilities showed an overall increasing trend from 9,981 million USD in 2005 to a peak near 36,427 million USD in 2016. After 2016, there was a notable decline to around 26,598 million USD by 2024. This suggests a period of aggressive leverage growth until 2016 followed by a phase of deleveraging and liability reduction in the subsequent years.

Short-term Borrowings and Long-term Debt

Debt levels, combining short-term borrowings and long-term debt, rose from 4,388 million USD in 2005 to a high of 19,616 million USD in 2016. Since then, debt has consistently declined, reaching approximately 12,074 million USD by 2024. This dramatic rise and fall in debt levels aligns with the total liabilities trend and underscores a strategic shift from high debt dependency to more conservative leverage management.

Total Stockholders’ Equity

Equity exhibited robust growth from 7,592 million USD in 2005, peaking sharply at 41,078 million USD in 2016. However, after 2016, stockholders’ equity experienced a significant decline to 11,071 million USD by 2020, followed by a recovery trend climbing back up to 21,130 million USD in 2024. The fluctuations in equity may correspond to changes in profitability, retained earnings, or capital restructuring events during this period, indicating some volatility in shareholder value after 2016 but with a positive recovery trend emerging more recently.

Overall, the financial data depicts a company that underwent significant financial expansion and increased leverage until around 2016, followed by a phase of consolidation, debt reduction, and equity volatility. The recent trends suggest improved management of liabilities and a gradual restoration of equity value, potentially pointing to strengthened financial stability in the later years of the series.

The analysis of cash flow activities over the presented periods reveals several notable trends and fluctuations across operating, investing, and financing activities.

Operating Activities

Net cash provided by operating activities generally exhibits a fluctuating upward trend from 2005 to around 2014, reaching a peak in 2014. Specifically, the cash inflows increase significantly from approximately 3,004 million USD in 2005 to a high of 11,195 million USD in 2014. After 2014, the net cash from operating activities shows a marked decline, especially in 2020, reaching a low near 2,944 million USD. Subsequently, there is a recovery trend observed in 2023 and 2024, with values rising back above 6,600 million USD. Overall, operating cash flows demonstrate cyclicality with a recovery phase in recent years following a dip around 2020.

Investing Activities

Net cash used in investing activities consistently reports negative values throughout the years, indicating continuous investment outflows. Early years (2005-2006) show significant cash outflows, with a peak negative figure around -5,097 million USD in 2006. The outflows fluctuate somewhat but remain substantial, with notable spikes in negative cash flows in 2011, 2013, and 2015 exceeding -9,000 million USD at one point in 2015. From 2016 onwards, investing cash outflows reduce in magnitude compared to earlier peaks but remain persistently negative, reflecting ongoing capital expenditures or asset acquisitions. The trend suggests sustained investment activities with varying intensity but no indication of cash inflow from divestitures or asset sales sufficient to offset capital spending.

Financing Activities

Net cash from financing activities exhibits considerable volatility, alternating between negative and positive values. From 2005 through 2008, cash flows were mostly negative, with a notable positive inflow in 2006. A period of significant negative financing cash flows occurs between 2009 and 2014, with particularly sharp declines in 2014. Around 2015, there is a brief positive inflow (1,374 million USD), but this is followed by substantial negative outflows from 2016 onward, consistently below -800 million USD annually. These fluctuations indicate varying strategies in debt management, equity issuance or repurchase, and dividend payments, with a predominant trend toward net outflows in recent years, suggesting repayment of debt or distribution of returns to shareholders over raising capital.

In summary, the company's cash flow profile illustrates strong operational cash generation with cyclical highs and lows, persistent capital investments resulting in ongoing cash outflows, and volatile financing activities that have leaned toward net cash outflows in recent years. The data suggests active management of financial resources with phases of investment and deleveraging, alongside the operational cash flow's resilience that underpins the overall liquidity position.

The financial data reveals notable fluctuations and trends in the earnings and dividend performance over the analyzed period.

Basic Earnings Per Share (EPS)

The basic EPS demonstrated a general upward trend from 2005 through 2013, increasing from 1.88 US$ to a peak of 5.09 US$. However, this positive trajectory reversed sharply starting in 2014, with EPS falling to 1.63 US$ and turning negative in 2016 and 2017 at -1.24 US$ and -1.08 US$, respectively. The years 2018 and 2019 saw a partial recovery with EPS values rising to 1.54 US$ and then declining again significantly in 2019 and 2020 to -7.32 US$ and -7.57 US$. From 2021 onwards, the EPS recovered steadily, reaching 3.14 US$ by 2024, though it remained below the peak values observed before 2014.

Diluted Earnings Per Share

The diluted EPS closely mirrored the pattern observed in basic EPS, confirming the consistency of earnings trends regardless of share dilution effects. It rose steadily until 2013, dropped into negative territory during the mid-2010s, and then showed recovery starting in 2021, reaching 3.11 US$ in 2024.

Dividend Per Share

The dividend per share exhibited a generally increasing trend from 2005 through 2014, rising from 0.42 US$ to a high of 2 US$. From 2014 to 2018, the dividend remained stable at 2 US$, indicating a period of maintained shareholder returns despite earnings volatility. A drop in dividends occurred in 2019 and 2020, falling significantly to 0.88 US$ and then to 0.5 US$. Following this decline, dividends started to recover from 2021, reaching 1.1 US$ by 2024, although this was still below the previous peak levels.

Overall, the period under review shows significant earnings volatility with peak performance in the early 2010s, a sharp decline and loss period mid-decade, and subsequent recovery towards the latter years. Dividend policy appeared relatively steady during strong earnings years, followed by a conservative reduction in dividend payout during periods of negative earnings, suggesting a cautious approach to shareholder returns during financial challenges.