SLB N.V. (NYSE:SLB)

The analysis of the financial metrics over the period from 2020 to 2024 reveals several notable trends in the company’s operational efficiency, liquidity, leverage, and profitability.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit a consistent upward trajectory, increasing from approximately 0.55 in 2020 to 0.74 by 2024. This indicates improving efficiency in utilizing assets to generate sales over the years.

Current Ratio

The current ratio has shown steady improvement, moving from about 1.23 reported and 1.26 adjusted in 2020 to 1.45 reported and 1.47 adjusted in 2024. This suggests a strengthening liquidity position, with the company becoming better able to cover its short-term liabilities with current assets.

Debt to Equity Ratio

There is a marked decline in debt to equity ratios, both reported and adjusted, from 1.4 in 2020 down to approximately 0.56-0.57 in 2024. This reflects a significant reduction in reliance on debt financing relative to equity, indicating a more conservative capital structure over time.

Debt to Capital Ratio

The debt to capital ratio also decreases consistently from 0.58 in 2020 to 0.36 by 2024, reinforcing the trend toward reduced leverage and greater equity proportion in the company’s capital structure.

Financial Leverage

The financial leverage ratio declines from a reported value of 3.52 in 2020 to 2.32 in 2024, and from 3.34 to 2.17 on an adjusted basis. This corroborates the reduced dependency on debt and suggests less financial risk over the period.

Net Profit Margin

Initially, net profit margins were negative in 2020, with reported and adjusted figures at approximately -44.57% and -51.41% respectively. However, from 2021 onwards, margins turned positive and improved significantly, stabilizing around 10-13% by 2024. This indicates a successful turnaround in profitability.

Return on Equity (ROE)

The ROE follows a similar pattern to net profit margin, with large negative returns in 2020 (-87.13% reported and -94.73% adjusted), then recovering to positive and increasing values between 16% and 21% from 2021 through 2024. This demonstrates enhanced efficiency in generating returns for shareholders.

Return on Assets (ROA)

ROA also improves from negative values in 2020 (around -25% reported and -28% adjusted) to positive, reaching between 7.7% and 9.1% by 2024. This rise reflects better utilization of assets to generate profits.

In summary, the company exhibits a clear improvement in operational efficiency, liquidity, and profitability after a challenging year in 2020. The consistent reduction in leverage and enhancement in profitability ratios suggest strengthened financial health and more prudent management of resources over the analyzed period.

The financial data indicates consistent growth and improving efficiency in the company’s operations over the analyzed period from 2020 to 2024.

Revenue Trends

Revenue shows a positive upward trajectory, increasing from approximately $23.6 billion in 2020 to $36.3 billion in 2024. This represents a substantial growth of over 50% across the five-year period, indicating the company's ability to expand its sales and market presence continuously.

Total Assets Development

Total assets exhibit a moderate but steady increase, rising from about $42.4 billion in 2020 to nearly $49.0 billion in 2024. The growth in assets is less pronounced compared to revenue, suggesting that the company is managing asset growth in line with or slightly below revenue expansion.

Asset Turnover Ratios

The reported total asset turnover ratio improves significantly from 0.56 in 2020 to 0.74 in 2024, reflecting enhanced efficiency in utilizing assets to generate revenue. A similar trend is observed in the adjusted total asset turnover, which remains consistent with the reported figures and increases from 0.55 to 0.74 over the same period.

Adjusted Total Assets

Adjusted total assets follow closely the reported total assets, indicating minor adjustments that do not materially affect the overall asset base reported. The adjusted figures also show a steady increase, mirroring the trend observed in reported total assets.

Analysis Summary

The company demonstrates robust revenue growth accompanied by a controlled increase in total assets. The improving asset turnover ratios suggest that the company is becoming more effective in converting its assets into revenue. This efficiency gain, alongside expanding revenue, points toward stronger operational performance and potentially better asset management practices over the years analyzed.

The financial data indicates a consistent upward trend in both current assets and current liabilities over the five-year period. Current assets increased from US$12,919 million in 2020 to US$18,570 million in 2024, reflecting growth in liquidity position. Similarly, current liabilities rose from US$10,491 million to US$12,811 million during the same period. Despite this increase, the current ratio, which measures the company's ability to cover short-term obligations with short-term assets, improved steadily from 1.23 in 2020 to 1.45 in 2024. This suggests an enhanced liquidity cushion.

When considering adjusted figures, adjusted current assets showed a somewhat higher growth compared to the unadjusted assets, rising from US$13,220 million in 2020 to US$18,895 million in 2024. Correspondingly, the adjusted current ratio increased from 1.26 to 1.47 over these years, indicating a cautiously optimistic assessment of the company’s short-term financial health after adjustments.

Current Assets

There was a notable increase in current assets over the period, with a particularly strong rise from 2021 to 2023, demonstrating improved asset management or accumulation of liquid resources.

Current Liabilities

The increase in current liabilities was comparatively moderate, with a peak in 2023 before a slight decline in 2024, suggesting potential efforts to manage or reduce short-term obligations.

Current Ratio

The rising trend in the reported current ratio indicates strengthening liquidity, with values consistently above 1, marking an ability to meet liabilities as they fall due.

Adjusted Figures

Both adjusted current assets and the adjusted current ratio followed similar positive trends, affirming the reliability of the liquidity improvement even after incorporating adjustments.

Overall, the data reflects a positive trajectory in liquidity management, with assets growing at a faster pace than liabilities and ratios indicating an increasingly secure short-term financial position.

The financial data exhibits clear trends in the company's capital structure and leverage over the five-year period analyzed.

Total Debt

The total debt consistently decreased from US$16,886 million in 2020 to US$12,074 million in 2024. This represents a reduction of approximately 28.5%, indicating a deliberate effort to reduce debt levels or improve the debt profile.

Total Stockholders’ Equity

The total stockholders' equity showed steady growth, rising from US$12,071 million in 2020 to US$21,130 million in 2024. This growth of roughly 75% over the period suggests strong retained earnings, capital injections, or revaluation effects enhancing the equity base.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio declined markedly from 1.4 in 2020 to 0.57 in 2024. This significant improvement reflects the combined effect of reducing debt and increasing equity, indicating lowered financial leverage and improved solvency.

Adjusted Total Debt and Equity

The trend in adjusted total debt mirrors that of reported debt, decreasing from US$17,897 million in 2020 to US$12,816 million in 2024. Similarly, adjusted total equity increased from US$12,809 million to US$22,742 million over the same period. The adjusted figures confirm the continued strengthening of the company's financial position.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio followed a nearly identical pattern to the reported ratio, declining from 1.4 to 0.56 between 2020 and 2024. This indicates consistent improvement in leverage, even when accounting for adjustments to debt and equity figures.

Overall, the company has demonstrated a consistent reduction in leverage and a robust increase in equity capital. These trends suggest enhanced financial stability and potentially lower risk for creditors and investors. The lowering of debt ratios reflects a strategic focus on strengthening the balance sheet and improving the capital structure over the analyzed period.

The financial data reveals a clear trend of decreasing leverage over the observed period. Both total debt and adjusted total debt have consistently declined from 2020 through 2024. Specifically, total debt decreased from 16,886 million US dollars in 2020 to 12,074 million in 2024, indicating a reduction in the company's reliance on debt financing. Adjusted total debt follows a similar pattern, dropping from 17,897 million US dollars to 12,816 million over the same timeframe.

In contrast, the total capital and adjusted total capital have increased steadily. Total capital grew from 28,957 million US dollars in 2020 to 33,204 million in 2024, while adjusted total capital rose from 30,706 million to 35,558 million. This growth in capital bases suggests an expansion of the overall funding used by the company, either through equity, retained earnings, or other non-debt financing sources.

Consequently, the ratios measuring debt to capital, both reported and adjusted, show a continual decline. The reported debt to capital ratio decreased from 0.58 in 2020 to 0.36 in 2024. The adjusted counterpart mirrors this trajectory, moving from 0.58 to 0.36. These reductions reflect an improvement in the company's capital structure, emphasizing less financial risk due to lower relative debt levels.

Overall, the trends indicate a consistent effort to reduce leverage while increasing total capitalization, implying strategic financial management aimed at strengthening the balance sheet and potentially enhancing financial stability and creditworthiness.

Total Debt

Decreased steadily from 16,886 million US dollars in 2020 to 12,074 million in 2024.

Adjusted Total Debt

Followed a similar declining trend from 17,897 million to 12,816 million across the period.

Total Capital

Increased from 28,957 million US dollars in 2020 to 33,204 million in 2024.

Adjusted Total Capital

Rose steadily from 30,706 million to 35,558 million during the same period.

Debt to Capital Ratios

Both reported and adjusted ratios fell from 0.58 in 2020 to 0.36 in 2024, reflecting reduced reliance on debt.

The financial data reveals several notable trends over the five-year period.

Total Assets

Total assets exhibited moderate fluctuation, initially decreasing slightly from 42,434 million US dollars at the end of 2020 to 41,511 million in 2021. Afterward, total assets experienced a steady increase, reaching 48,935 million by the end of 2024. This indicates gradual asset growth, particularly from 2022 onwards.

Total Stockholders’ Equity

Stockholders’ equity demonstrated a consistent upward trajectory throughout the period, increasing from 12,071 million US dollars in 2020 to 21,130 million in 2024. This represents substantial growth in equity, reflecting accumulation of retained earnings or new equity financing.

Reported Financial Leverage

The reported financial leverage ratio showed a clear declining trend, improving from 3.52 in 2020 to 2.32 in 2024. This suggests a reduction in reliance on debt relative to equity, indicating enhanced financial stability and reduced risk exposure associated with leverage.

Adjusted Total Assets

Adjusted total assets followed a pattern similar to total assets, with a slight decline from 42,735 million in 2020 to 41,830 million in 2021, followed by steady growth to 49,260 million in 2024. Adjustments appear to maintain the overall growth trend visible in reported figures.

Adjusted Total Equity

Adjusted equity increased consistently and more markedly relative to adjusted assets, beginning at 12,809 million in 2020 and rising to 22,742 million in 2024. This reinforces the observation of strengthening equity bases over time.

Adjusted Financial Leverage

Consistent with the reported leverage pattern, adjusted financial leverage decreased from 3.34 in 2020 to 2.17 in 2024. The reduction in adjusted leverage supports the conclusion of improved capital structure and decreasing financial risk.

Overall, the data depicts a company steadily increasing its asset base while significantly strengthening its equity position. The continuous decline in both reported and adjusted financial leverage ratios indicates a strategic emphasis on lowering debt reliance and enhancing capital adequacy. These trends reflect improving financial health and resilience over the period analyzed.

The financial data reveals several notable trends over the five-year period. A significant turnaround can be observed in profitability metrics, with a shift from losses in 2020 to consistent profitability from 2021 onwards. Revenue has shown steady growth after a slight decline from 2020 to 2021, indicating recovery and expansion in the company's operations.

Revenue

Revenue decreased slightly from 23,601 million US dollars in 2020 to 22,929 million US dollars in 2021. Subsequently, it increased significantly each year, reaching 36,289 million US dollars by the end of 2024. This represents a robust upward trend in top-line performance, especially notable from 2021 to 2024.

Net Income (Loss) Attributable to SLB

The net income attributable to SLB showed a remarkable improvement. In 2020, the company reported a substantial loss of 10,518 million US dollars. This shifted dramatically to a profit of 1,881 million in 2021, with steady increases in the following years, reaching 4,461 million US dollars in 2024. This indicates a recovery and strengthening of the company's earnings capability.

Reported Net Profit Margin

The reported net profit margin mirrored the net income trend. It was deeply negative at -44.57% in 2020 but turned positive to 8.2% in 2021. The margin improved further to around 12% in the subsequent years before slightly declining to 12.29% in 2024. This stabilizing positive margin reflects enhanced profitability maintained over the period.

Adjusted Net Income (Loss)

The adjusted net income also demonstrated a notable recovery from a loss of 12,134 million US dollars in 2020 to a profit of 3,229 million US dollars in 2021. While the adjusted net income experienced slight fluctuations from 3,189 million in 2022 to a peak in 2023 at 3,901 million, it decreased slightly to 3,830 million in 2024. Despite these fluctuations, the adjusted profits remained positive and comparatively stable post-2020.

Adjusted Net Profit Margin

The adjusted net profit margin was at its lowest in 2020 with -51.41%, which improved substantially to 14.08% in 2021. After a dip to 11.35% in 2022, it rose to 11.77% in 2023 before decreasing to 10.55% in 2024. Although showing some volatility, the margin stayed comfortably in positive territory, indicating ongoing profitability after adjustments.

Overall, the data reflects a significant recovery phase starting in 2021, transitioning from losses to sustained profitability. Revenue growth supports this positive earnings trajectory, with both reported and adjusted profit margins stabilizing in the low to mid-teens percentage range after the initial recovery. Minor variations in adjusted net income and margin in the last two years suggest some underlying adjustments or external factors but do not undermine the overall healthy performance trend.

The financial performance and equity structure of the company exhibit clear improvement and stabilization trends over the analyzed period. Starting from a challenging position with significant net losses and negative returns on equity in 2020, the company transitioned to positive and steadily increasing net income figures from 2021 onward. This recovery is substantiated by both reported and adjusted net incomes, which show consistent growth through 2024.

Net Income Trends

In 2020, the company experienced a substantial net loss attributable to shareholders, exceeding 10 billion US dollars. However, from 2021 to 2024, the company reported positive net income values, with a rising trajectory each year, culminating in approximately 4.5 billion US dollars in 2024. Adjusted net income followed a similar pattern, turning positive in 2021 and growing steadily, indicating improvements in operational performance after accounting for adjustments.

Equity Base and Growth

Total stockholders’ equity also showed continuous expansion during the period. Beginning at about 12 billion US dollars in 2020, the equity base increased annually to reach over 21 billion US dollars by 2024. The adjusted total equity figures, which likely exclude certain accounting adjustments, mirrored this upward trend, reaching over 22 billion US dollars by the end of 2024. This growth in equity provides a stronger capital foundation.

Return on Equity (ROE) Performance

Return on equity experienced pronounced volatility in 2020, with both reported and adjusted ROE registering deeply negative percentages (around -87% and -95%, respectively). This reflects the substantial losses incurred during that year relative to the equity base. From 2021 onwards, ROE improved markedly, stabilizing in the range of approximately 16.8% to 21.1% by 2024. The reported ROE consistently remained higher than the adjusted ROE in this latter period, reflecting possible differences in profit and equity calculation methodologies.

Overall Insights

The data indicate a significant recovery and strengthening phase for the company following a difficult 2020. The consistent growth in net income and equity points to enhanced profitability and capitalization. While the adjusted profitability metrics portray more modest returns compared to the reported figures, the overall positive trend in both sets of data suggests sustainable improvements in financial health. The gradual increase in ROE also implies more efficient utilization of shareholder capital over time.

The financial performance over the analyzed periods shows a considerable improvement in net income attributable to the entity, transitioning from a significant loss to consistent profitability. The net income loss of -10,518 million US dollars in 2020 shifted to positive territory by 2021, with growing profits in subsequent years reaching 4,461 million US dollars in 2024. This upward trend reflects a strong recovery and ongoing operational improvement.

Total assets demonstrated a moderate upward trend after a slight decline in the early period. Starting at 42,434 million US dollars in 2020, total assets experienced a minor decrease in 2021 but increased steadily from 2022 onwards, reaching almost 49,000 million US dollars by the end of 2024. This growth in assets indicates expansion or acquisition activity contributing to an enhanced asset base.

Reported Return on Assets (ROA) mirrored the profitability trends with a sharp turnaround from -24.79% in 2020 to a positive 4.53% in 2021. The ROA continued to improve, reaching a peak of 9.12% by 2024, suggesting more effective use of assets in generating profit. This increase in ROA over the years signifies improved operational efficiency and profitability management.

When considering adjusted figures, which likely remove non-recurring items or other adjustments, the adjusted net income also shows a recovery from a loss of -12,134 million US dollars in 2020 to positive values afterward, although it slightly declined from 3,901 million US dollars in 2023 to 3,830 million US dollars in 2024. This minor decrease might suggest some fluctuations in core earnings that warrant continued monitoring.

Adjusted total assets follow a similar trajectory to reported total assets, with steady growth after 2021, increasing from 41,830 million US dollars to 49,260 million US dollars in 2024. This consistent increase supports the scenario of asset base expansion under adjusted terms.

The adjusted ROA, while improving markedly from negative figures in 2020 to positive values in 2021, reveals a more variable pattern than the reported ROA in the final years. It peaked at 8.08% in 2023 but decreased slightly to 7.78% in 2024, indicating some moderation in the company’s underlying profitability on an adjusted basis.

Summary of Key Trends:

- Strong recovery in net income after a significant loss, maintaining positive growth through 2024.

- Steady increase in total and adjusted total assets after initial fluctuations, indicating asset expansion.

- Improvement in reported ROA, reflecting better asset utilization and profitability over time.

- Adjusted net income shows sustained profitability with slight variability in the latest period.

- Adjusted ROA indicates healthy but slightly fluctuating profitability on an underlying basis.

Overall, the financial metrics indicate significant turnaround performance from losses to profitability, increasing asset base, and improved returns on assets, with some variability in adjusted profitability measures in the most recent period. Continuous observation is recommended to assess the stability of these trends.