SLB N.V. (NYSE:SLB)

The financial data reveals a notable recovery and positive trend in key performance indicators over the five-year period. The Net Operating Profit After Taxes (NOPAT) showed a significant improvement, transitioning from a substantial loss in the earliest period to consistent positive values thereafter. Specifically, the NOPAT was deeply negative initially, indicating operational challenges or impairment; however, it shifted to a positive figure in the subsequent year and continued to rise steadily each year, with the most recent data showing the highest annual profit in the period analyzed.

Invested capital exhibited a moderate fluctuation throughout the timeline. Although it decreased slightly early on, it subsequently increased year-on-year from the third year forward, indicating continued investment or asset growth within the company. The gradual rise in invested capital, especially in the later years, suggests an expansion of the company's asset base or reinvestment of earnings to support operational growth.

The Return on Invested Capital (ROIC) presents a crucial insight into the efficiency and profitability of the company's investment strategy. It improved dramatically from a deeply negative value initially, aligning with the recovery in operating profit. The steady increase in ROIC over the years reflects enhanced operational performance and effective capital allocation. Although the growth rate of ROIC began to moderate towards the most recent periods, it remained at a healthy level above 12%, signifying sustained returns that exceed cost of capital over these years.

Net Operating Profit After Taxes (NOPAT)

Initial negative figure transitioning to positive with steady growth afterward, indicating recovery and improvement in profitability.

Invested Capital

Moderate fluctuation with initial decrease followed by increasing invested capital, suggesting asset base expansion or reinvestment.

Return on Invested Capital (ROIC)

Marked improvement from negative value to stable double-digit returns, pointing to enhanced operational efficiency and capital effectiveness.

The financial performance indicators display a notable shift over the observed period, demonstrating a recovery and subsequent stabilization in key profitability and efficiency metrics.

Operating Profit Margin (OPM)

The operating profit margin experienced a significant turnaround from a deep negative value of -45.46% in 2020 to positive margins starting in 2021. From 2021 through 2024, OPM steadily increased, peaking at 17.24% in 2023 before a slight decline to 16.61% in 2024. This trend signifies improved operational efficiency and profitability after an initial loss-making year.

Turnover of Capital (TO)

The turnover of capital demonstrated a gradual and consistent increase throughout the time frame. Starting at 0.71 in 2020, it improved slightly to 0.7 in 2021, then continued its upward trajectory to reach 0.92 by 2024. This indicates more effective use of capital resources, contributing positively to asset utilization and operational efficiency.

Effective Cash Tax Rate Inverse (1 – CTR)

The ratio representing one minus the effective cash tax rate remained relatively stable, fluctuating modestly between 79.88% and 81.27%. It started at 100% in 2020—likely indicative of an unusual tax circumstance—and stabilized thereafter. The consistent values suggest predictable tax cash outflows relative to earnings in the later years.

Return on Invested Capital (ROIC)

ROIC mirrored the positive trend seen in OPM, moving from a substantial negative -33.73% in 2020 to positive returns from 2021 onwards. The figure incrementally grew each year, reaching a peak of 12.29% in 2023, with a slight decrease to 12.23% in 2024. This reflects an improving ability to generate returns from capital invested, reinforcing the company’s enhanced financial health and operational effectiveness.

In summary, the data indicates a strong recovery from financially challenging conditions in 2020 with continuous improvements in profitability, capital efficiency, and return generation. The operational improvements combined with stable tax cash flows suggest a more sustainable and efficient operational model in recent years.

The financial data reveals significant changes over the analyzed period. Initially, the net operating profit before taxes (NOPBT) was negative, indicating substantial operating losses. However, from 2021 onward, NOPBT improved markedly, turning positive and demonstrating a consistent upward trajectory through 2024. This positive trend signals enhanced operational efficiency and profitability over time.

Revenue figures show a fluctuating yet overall upward trend. There was a slight decrease from 2020 to 2021, followed by continual growth in subsequent years, reaching the highest value in 2024. This growth in revenue suggests an expanding market presence or increased sales volumes that likely supported the improving profitability metrics.

The operating profit margin (OPM) shifted from a negative level in 2020 to positive margins starting in 2021, sustaining improvement into 2023. Although there is a minor decrease in 2024, the margin remains substantially higher than in the initial year. This change points to improved operational control and cost management, enhancing earnings relative to revenue despite the slight contraction in the last year.

Net Operating Profit Before Taxes (NOPBT)

Initially negative in 2020, it transitioned to positive figures from 2021 and showed steady growth each year up to 2024.

Revenue

Experienced a minor decline in 2021 following 2020, then increased each subsequent year, indicating recovery and expansion.

Operating Profit Margin (OPM)

Moved from a negative margin in 2020 to a positive and relatively stable margin from 2021 through 2024, reflecting improved profitability and operational efficiency.

Revenue Trend

The revenue of the company exhibited a positive growth trajectory over the five-year period analyzed. Starting from US$23,601 million in 2020, there was a slight decline in 2021 to US$22,929 million, followed by a consistent and significant increase through to 2024, reaching US$36,289 million. The trend indicates strong recovery and expansion, especially notable from 2021 onward.

Invested Capital Trend

The invested capital showed a moderate upward trend with some fluctuations. Initially, there was a slight decrease from US$33,428 million in 2020 to US$32,896 million in 2021. Subsequently, invested capital increased year-over-year, rising to US$39,383 million by 2024. This reflects ongoing capital investment, supporting business growth.

Turnover of Capital (TO) Ratio Trend

The turnover of capital ratio, which measures efficiency in using invested capital to generate revenue, displayed a steady improvement. Beginning at 0.71 in 2020 and slightly decreasing to 0.70 in 2021, the ratio then improved notably to reach 0.92 in 2024. The rising TO ratio suggests that the company is increasingly effective in generating revenue from its invested capital over the analyzed period.

Overall Observations

Despite an initial dip in both revenue and invested capital in 2021, the company demonstrated strong and consistent growth from 2022 onwards. The increasing revenue, combined with a growing invested capital base, was accompanied by an improving turnover of capital ratio, indicating enhanced operational efficiency and more productive use of capital. These patterns reflect positive financial momentum and effective asset utilization strategies.

The financial data over the five-year period illustrates notable developments in cash operating taxes, net operating profit before taxes (NOPBT), and the effective cash tax rate (CTR).

Net Operating Profit Before Taxes (NOPBT)

There was a substantial improvement in NOPBT from 2020 to 2021. The company recorded a significant loss of -10,729 million USD in 2020, which turned into a profit of 2,876 million USD in 2021. This positive trend continued with profits increasing steadily to 4,706 million USD in 2022, 5,711 million USD in 2023, and 6,026 million USD in 2024. The data indicates robust recovery and consistent growth in operating profitability over the period.

Cash Operating Taxes

The cash taxes paid showed a continual increase throughout the period from 546 million USD in 2020 to 1,211 million USD in 2024. This upward trend corresponds with the improvement in profitability, reflecting higher tax payments aligned with the increased earnings before tax. The rise in cash tax outflows suggests greater taxable income and effective tax management in operation.

Effective Cash Tax Rate (CTR)

The effective cash tax rate, available from 2021 onwards, remained relatively stable and consistent over the years. Starting at 20.12% in 2021, it slightly decreased to 19.23% in 2022, then further to 18.73% in 2023, before returning close to the initial rate at 20.09% in 2024. This narrow range indicates a steady tax burden relative to operating profits, supporting predictability in tax expenses.

Overall, the data reflects a significant turnaround in operational profitability, consistent growth in cash tax payments, and a stable effective cash tax rate, indicating improved financial health and effective tax planning during the observed period.