SLB N.V. (NYSE:SLB)

The financial data reveals several notable trends in the company’s operating performance, cost of capital, invested capital, and economic profit over the five-year period analyzed.

Net Operating Profit After Taxes (NOPAT)

There is a significant recovery in NOPAT from a large negative value of -11,275 million US dollars in 2020 to positive figures in subsequent years. Starting at 2,298 million in 2021, NOPAT steadily increased through to 4,815 million in 2024. This upward trend indicates a substantial improvement in operating profitability after taxes.

Cost of Capital

The cost of capital shows an increasing trend from 13.26% in 2020 to a peak of 17.99% in 2022. Afterwards, it slightly declines but remains elevated at 17.24% in 2024 compared to the 2020 level. This suggests that the company faced rising capital costs over the period, which may be reflective of broader economic conditions or changes in the company’s risk profile.

Invested Capital

Invested capital remains relatively stable initially, with a minor decrease from 33,428 million in 2020 to 32,896 million in 2021, followed by consistent growth. By 2024, invested capital reached 39,383 million, indicating ongoing investments and expansion of the capital base over the latter years.

Economic Profit

Economic profit, which integrates profitability relative to the cost of capital, remains negative throughout the entire period but shows improvement. It moves from a significant loss of -15,707 million in 2020 to a reduced loss of -1,976 million in 2024. Despite the ongoing negative values, the decreasing magnitude of losses suggests the company is gradually closing the gap between returns and the cost of capital.

Overall, the data depicts a company undergoing a recovery phase in profitability with increased operating efficiency. However, the persistent negative economic profit despite positive NOPAT and increased invested capital, alongside rising cost of capital, indicates challenges in generating returns above the cost of financing. Continued efforts appear necessary to achieve sustained economic profitability.

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 financial data reveals several trends regarding economic profit, invested capital, and economic spread ratio over the five-year period ending December 31, 2024.

Economic Profit

The economic profit shows a significant improvement from 2020 to 2021, rising sharply from a substantial negative figure of -15,707 million US dollars to -3,081 million US dollars. Although still negative throughout the period, the losses continue to decrease gradually in the subsequent years, reaching -1,976 million US dollars by the end of 2024. This trend suggests a consistent effort to reduce economic losses, albeit without achieving positive economic profit during this timeframe.

Invested Capital

Invested capital displays a steady upward trend from 33,428 million US dollars in 2020 to 39,383 million US dollars in 2024. The increase is moderate year-over-year, with a particularly notable rise between 2022 and 2023. This growth indicates ongoing investment activities or asset accumulation, expanding the capital base of the company over the period.

Economic Spread Ratio

The economic spread ratio improves notably from a deeply negative -46.99% in 2020 to -9.37% in 2021, reflecting enhanced efficiency or returns on invested capital relative to cost. Over the subsequent years, although the ratio remains negative, it continues to improve progressively, ending at -5.02% in 2024. This consistent improvement mirrors the trend seen in economic profit, suggesting reduced losses on returns and possibly better capital allocation or operating performance.

In summary, the company demonstrates a clear trend toward reducing economic losses and improving economic efficiency despite sustained negative returns. The continuous growth in invested capital shows expansion or reinvestment activity. The overall pattern indicates gradual progress in financial performance, with potential for further improvement if the negative economic profit and spread ratios can be reversed into positive territory in the future.

The financial data indicates a clear upward trend in revenue for the company over the five-year period. Revenue increased from approximately $23.6 billion in 2020 to nearly $36.3 billion in 2024, reflecting consistent growth each year. This suggests expanding business operations or improved market performance contributing to higher sales.

Despite the increase in revenue, economic profit figures remain negative throughout the period but demonstrate significant improvement. The economic loss narrowed sharply from about -$15.7 billion in 2020 to roughly -$2 billion in 2024. This reduction in economic loss suggests enhanced operational efficiency or better cost management leading to diminished economic deficits.

Correspondingly, the economic profit margin shows a persistent negative trend but with a marked reduction in negative values. Starting from -66.55% in 2020, it improved progressively to -5.44% by 2024. This indicates that although the company has not yet achieved positive economic profit, its profitability relative to revenue is steadily moving towards break-even and potentially positive territory in future periods.

Overall, the company's financial performance reflects strong revenue growth accompanied by a notable contraction in economic losses and improvement in profitability margins. The trends suggest ongoing efforts to optimize costs and operations are yielding tangible improvements, positioning the company closer to achieving positive economic profit in the near term.