SLB N.V. (NYSE:SLB)

The financial data reveals significant fluctuations and some recovery trends over the five-year period.

Net Operating Profit After Taxes (NOPAT)

The NOPAT exhibited a substantial negative value in the first year, indicating losses. However, the company demonstrated improvement over the subsequent years, turning positive in 2021 and showing a consistent upward trend through 2024. This trend reflects effective operational performance enhancement and increased profitability.

Cost of Capital

The cost of capital increased from 13.15% in the first year to over 17% in 2022, stabilizing slightly at around 17% in the last two years. This rising trend suggests a higher required return by investors or increased risk perceived by the market, which may impact investment decisions and overall valuation.

Invested Capital

The invested capital remained relatively stable in the early years but showed a noticeable increase from 2022 onwards, reaching its highest level in 2024. This increment points to additional investments or asset growth, potentially to support expanded operations or capitalize on growth opportunities.

Economic Profit

Economic profit, which accounts for the cost of capital, remained negative throughout the period, though the magnitude of the negative values lessened over time. Despite operational improvements reflected in positive NOPAT, the company has yet to generate returns surpassing its capital charges. The trend towards reducing economic losses is positive but indicates that the firm still needs to enhance value creation for shareholders.

In summary, the company transitioned from significant operational losses to consistent profitability while managing higher capital costs and expanding invested capital. Nonetheless, it has yet to achieve positive economic profit, suggesting ongoing challenges in completely offsetting the cost of capital and achieving value-added growth.

The financial performance over the five-year period demonstrates a significant turnaround and continued improvement. Initially, there was a substantial net loss attributable to the company, followed by positive net income figures in subsequent years that increased steadily. This positive trend in net income is indicative of enhanced profitability and operational efficiency.

Similarly, the net operating profit after taxes (NOPAT) reflects a comparable trajectory. The initial negative value suggests operational challenges; however, subsequent values indicate recovery and growth. The NOPAT consistently increased year over year, suggesting improved operational management and a stronger ability to generate profit from core activities after accounting for taxes.

Net Income (Loss) Attributable to the Company

The net income was significantly negative in the initial year, reflecting considerable losses. From the following year onward, the company achieved positive net income that increased each year, reaching the highest value in the final reported year. This consistent growth highlights successful efforts in boosting profitability and possibly the impact of strategic initiatives or market conditions favoring the company.

Net Operating Profit After Taxes (NOPAT)

The NOPAT figures mirror the profit improvement seen in net income. Starting with a large operating loss, NOPAT turned positive in the second year and grew progressively each year. This metric suggests the company not only recovered from its operating losses but also enhanced its core operational efficiency, resulting in increased post-tax operating profits.

Overall, the data suggest a positive operational turnaround and financial strengthening over the period, with marked improvements in profitability and operational effectiveness. The upward trends in both net income and NOPAT indicate that the company has managed to overcome initial difficulties and establish a trajectory of sustainable growth.

Tax Expense (Benefit) Trend

The tax expense demonstrated a significant shift from a negative value of -812 million US dollars in 2020 to positive values in subsequent years. Specifically, it increased to 446 million in 2021, followed by a further rise to 779 million in 2022. This upward trajectory continued with 1,007 million in 2023 and reached 1,093 million in 2024. This trend indicates a transition from a tax benefit or credit situation in 2020 towards steadily increasing tax liabilities over the following periods.

Cash Operating Taxes Trend

Cash operating taxes exhibited a consistent upward trend across the five-year period. Beginning at 546 million US dollars in 2020, it increased moderately to 579 million in 2021. This increase became more pronounced in 2022 with a rise to 905 million. The subsequent years recorded further increases to 1,070 million in 2023 and 1,211 million in 2024. The data suggests growing cash outflows related to tax obligations, reflecting increasing taxable income or changes in tax regulations.

Overall Tax Position

Collectively, the data reveals a clear pattern of increasing tax-related expenses. The movement from a tax benefit in 2020 to steadily higher tax expenses and cash operating taxes over five years suggests improving profitability or changing tax circumstances that require greater tax payments. The consistent increase in cash operating taxes aligns with the growing tax expense, underscoring a heightened cash burden related to taxation.

The financial data reveals notable trends in key components of the company's capital structure and invested capital over a five-year period, from December 31, 2020, through December 31, 2024.

Total reported debt & leases

This figure shows a consistent decline from US$17,897 million at the end of 2020 to US$12,925 million by the end of 2022. Thereafter, it stabilizes with minimal fluctuations, holding steady at around US$12,775 to US$12,816 million through 2023 and 2024. This trend indicates a substantial reduction in leverage or debt obligations in the initial years, followed by a period of debt stabilization.

Total SLB stockholders’ equity

Equity exhibits a strong upward trajectory, increasing from US$12,071 million in 2020 to US$21,130 million in 2024. The progression is steady year-over-year, representing significant growth in the company’s net assets and possibly reflecting retained earnings, capital injections, or other equity-enhancing activities.

Invested capital

The invested capital metric shows a moderate increase from US$33,428 million in 2020 to US$39,383 million in 2024. There is a slight dip observed in 2021, but following that, the invested capital consistently increases year by year, with a notable rise from 2022 onward. This pattern indicates an overall expansion in the assets deployed in the business, suggesting ongoing investment activities and possible growth initiatives.

Overall, the data indicates a strengthening in the company’s financial position characterized by a reduction in debt levels during the early years alongside steady growth in equity and invested capital. The stable debt levels in later years combined with increasing equity and invested capital suggest improved capital structure management and potentially enhanced financial flexibility.

The analysis of the financial data reveals significant trends in economic profit, invested capital, and the economic spread ratio over a five-year period.

Economic Profit

The economic profit shows a substantial improvement from an initially large negative value of -15,669 million US dollars in 2020 to a negative value of -1,916 million US dollars in 2024. Although it remains negative throughout, the consistent reduction in losses each year indicates an improving profitability position relative to capital costs. This trend suggests the company is moving toward more efficient value generation despite still facing economic losses.

Invested Capital

The invested capital exhibits a generally increasing trend, starting at 33,428 million US dollars in 2020 and rising to 39,383 million US dollars by 2024. This growth indicates ongoing or expanding investment in assets or operations, which could be aimed at long-term growth. The rise in invested capital, coupled with improving economic profits, suggests an effort to optimize asset utilization.

Economic Spread Ratio

The economic spread ratio improves from -46.87% in 2020 to -4.87% in 2024, demonstrating a marked decrease in the negative spread. This ratio captures the difference between returns generated and the cost of capital. Although still negative, the upward trend suggests the company is making progress in reducing value destruction, leading to more favorable returns on invested capital relative to costs.

Overall, the data reflects a positive trajectory in the company's financial performance. Despite persistent negative economic profit and spread ratios, the continuous improvement over the period evidences strengthening operational efficiency and capital management. The increase in invested capital alongside shrinking losses points to strategic investment efforts to enhance future value creation.

The financial data reveals several notable trends over the five-year period under review. Revenue demonstrates consistent growth from 2020 through 2024, rising from 23,601 million US dollars in 2020 to 36,289 million US dollars in 2024. This reflects a positive upward trajectory, indicating expanding sales or operational scale.

In contrast, economic profit, while improving from a significantly negative position in 2020, remains negative throughout the period. Starting at -15,669 million US dollars in 2020, economic profit improves markedly to -1,916 million US dollars by 2024. This progression suggests that the company is moving toward profitability but has yet to achieve positive economic profit.

Similarly, the economic profit margin, which is the ratio of economic profit to revenue expressed as a percentage, follows an upward trend from -66.39% in 2020 to -5.28% in 2024. Although still negative, this margin's improvement aligns with the increasing economic profit and growing revenue, implying enhanced efficiency or value creation relative to sales.

Revenue

Shows sustained annual growth indicating expansion in company operations or market presence.

Economic Profit

Remains negative but with significant year-over-year improvement, signaling progress toward profitability.

Economic Profit Margin

Consistently negative but improving, denoting a trend toward better economic value generation per unit of revenue.

Overall, the data suggests that while profitability remains a challenge, the company is on a positive trajectory of revenue growth coupled with reduction in losses in terms of economic profit and associated margins. Continued focus on improving operational efficiency and cost management would be crucial to transitioning into positive economic profit in the future.