Stock Analysis on Net

SLB N.V. (NYSE:SLB)

$24.99

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Paying user area


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Two-Component Disaggregation of ROE

SLB N.V., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2024 = ×
Dec 31, 2023 = ×
Dec 31, 2022 = ×
Dec 31, 2021 = ×
Dec 31, 2020 = ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial ratios over the five-year period demonstrate significant improvement and positive trends in the company's profitability and financial structure.

Return on Assets (ROA)
The ROA experienced a substantial turnaround from a negative value of -24.79% in 2020 to positive figures starting in 2021, subsequently increasing steadily each year to reach 9.12% in 2024. This trend indicates enhanced efficiency in using assets to generate profit, reflecting better operational performance and asset management.
Financial Leverage
The financial leverage ratio showed a continuous decline from 3.52 in 2020 to 2.32 in 2024. This decrease suggests a reduction in the company's reliance on debt financing relative to equity, indicating an improvement in financial stability and a lower risk profile related to debt obligations.
Return on Equity (ROE)
ROE displayed a remarkable recovery from a highly negative -87.13% in 2020 to positive and growing returns, reaching 21.11% by 2024. The steady increase in ROE aligns with the improvement in net profitability and effective management of equity capital, contributing to higher shareholder value.

Overall, the data reflects a company that has successfully reversed previous financial difficulties, improved profitability, reduced financial risk, and enhanced returns to equity investors over the reviewed period.


Three-Component Disaggregation of ROE

SLB N.V., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 = × ×
Dec 31, 2023 = × ×
Dec 31, 2022 = × ×
Dec 31, 2021 = × ×
Dec 31, 2020 = × ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Net Profit Margin
The net profit margin exhibited a significant turnaround from a substantial negative value of -44.57% in 2020 to positive margins from 2021 onwards. It increased to 8.2% in 2021 and maintained a steady upward trajectory, reaching 12.68% in 2023 before a slight decline to 12.29% in 2024. This pattern indicates effective cost management and enhanced profitability over the period following 2020.
Asset Turnover
Asset turnover demonstrated a consistent improvement across the five-year span. Starting at 0.56 in 2020, it slightly dipped to 0.55 in 2021, then advanced progressively to 0.74 by 2024. This trend reflects growing efficiency in utilizing assets to generate revenues, suggesting strengthening operational performance.
Financial Leverage
Financial leverage showed a continuous decline over the period, decreasing from 3.52 in 2020 to 2.32 in 2024. This steady reduction indicates a lowering dependence on debt financing relative to equity, implying a more conservative capital structure and potentially reduced financial risk.
Return on Equity (ROE)
Return on equity mirrored the pattern observed in net profit margin, with a sharp recovery from a negative figure of -87.13% in 2020 to a positive 12.54% in 2021. It then followed an improving trend, reaching 21.11% in 2024. The upward movement in ROE highlights increased profitability and efficient equity utilization, correlating with improved operational performance and reduced leverage.

Five-Component Disaggregation of ROE

SLB N.V., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 = × × × ×
Dec 31, 2023 = × × × ×
Dec 31, 2022 = × × × ×
Dec 31, 2021 = × × × ×
Dec 31, 2020 = × × × ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data indicates notable improvements in several key areas over the observed period from 2020 to 2024.

Profitability Margins
The EBIT margin showed a dramatic recovery, moving from a significant negative value in 2020 (-45.62%) to positive and progressively improving margins, peaking at 17.24% in 2023 before a slight decrease to 16.72% in 2024. This suggests enhanced operational efficiency and profitability over the years.
Efficiency Ratios
The asset turnover ratio exhibited a steady upward trend, increasing from 0.56 in 2020 to 0.74 by the end of 2024. This reflects growing effectiveness in utilizing assets to generate sales revenue.
Financial Leverage
Financial leverage decreased consistently from 3.52 in 2020 to 2.32 in 2024, indicating a gradual reduction in the use of debt financing relative to equity, which may contribute to lower financial risk.
Return Measures
Return on equity (ROE) showed significant improvement, recovering from a substantial negative return of -87.13% in 2020 to reach over 21% in 2024. This aligns with the improved EBIT margin and reduced financial leverage, suggesting stronger profitability and efficient capital use.
Burden Ratios
The interest burden ratio increased steadily from 0.81 in 2021 to 0.92 in 2024, indicating a rising ability to cover interest expenses from operating income before interest and taxes. Conversely, the tax burden ratio remained relatively stable around 0.8 to 0.82 across the years, suggesting consistent tax impact on earnings.

Overall, the company's financial performance demonstrates a clear recovery and strengthening position, marked by increased profitability, better asset utilization, lower leverage, and improved returns to equity holders.


Two-Component Disaggregation of ROA

SLB N.V., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2024 = ×
Dec 31, 2023 = ×
Dec 31, 2022 = ×
Dec 31, 2021 = ×
Dec 31, 2020 = ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Net Profit Margin
The net profit margin demonstrated a significant turnaround, moving from a negative value of -44.57% in 2020 to positive margins in subsequent years. Starting from 8.2% in 2021, it increased to 12.25% in 2022, followed by a slight increase to 12.68% in 2023, and a marginal decline to 12.29% in 2024. Overall, the company achieved a stable and healthy profitability level after a substantial loss in 2020.
Asset Turnover
The asset turnover ratio showed a gradual upward trend over the period. It decreased slightly from 0.56 in 2020 to 0.55 in 2021 but then increased steadily to 0.65 in 2022, 0.69 in 2023, and further to 0.74 in 2024. This indicates improving efficiency in using assets to generate sales.
Return on Assets (ROA)
Return on Assets experienced a significant improvement, reflecting enhanced profitability relative to total assets. The metric rose from a negative -24.79% in 2020 to a positive 4.53% in 2021. It continued to improve to 7.98% in 2022, 8.76% in 2023, and reached 9.12% in 2024. This consistent increase illustrates better overall asset utilization contributing to earnings.

Four-Component Disaggregation of ROA

SLB N.V., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2024 = × × ×
Dec 31, 2023 = × × ×
Dec 31, 2022 = × × ×
Dec 31, 2021 = × × ×
Dec 31, 2020 = × × ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data reveals several notable trends over the five-year period, highlighting improvements in operational efficiency and profitability ratios.

Tax Burden
The tax burden ratio shows a relatively stable trend from 2021 onwards, with values hovering slightly below 0.82 and gradually decreasing to 0.80 by 2024. This stability indicates consistent tax expenses relative to earnings before tax, suggesting effective management of tax obligations.
Interest Burden
The interest burden ratio has improved steadily, increasing from 0.81 in 2021 to 0.92 in 2024. This upward trend suggests that the company is increasingly retaining earnings before interest and taxes, possibly due to better control of interest expenses or reduced debt levels.
EBIT Margin
The EBIT margin shows a remarkable turnaround from a significantly negative value in 2020 (-45.62%) to positive margins from 2021 onwards, peaking at 17.24% in 2023 before a slight decline to 16.72% in 2024. This pattern indicates a recovery from prior operational losses to a solid and sustainable profitability level at the operating profit stage.
Asset Turnover
Asset turnover steadily increased from 0.56 in 2020 to 0.74 in 2024, reflecting improved efficiency in generating revenue from the company's asset base. The upward trajectory implies enhanced asset utilization and operational effectiveness over the period.
Return on Assets (ROA)
ROA exhibits a significant positive trend, moving from a deeply negative figure of -24.79% in 2020 to consistent growth thereafter, reaching 9.12% by 2024. This progression underscores a marked enhancement in the company's ability to generate profits from its assets, aligning with the observed improvements in EBIT margins and asset turnover.

Overall, the company's financial indicators demonstrate a transition from a challenging fiscal position in 2020 to stronger operational performance and profitability in subsequent years. The combination of improved interest and tax burden ratios, increasing asset turnover, and recovering margins culminates in a notably enhanced return on assets. This suggests effective management actions to restore profitability and asset efficiency.


Disaggregation of Net Profit Margin

SLB N.V., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2024 = × ×
Dec 31, 2023 = × ×
Dec 31, 2022 = × ×
Dec 31, 2021 = × ×
Dec 31, 2020 = × ×

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data reveals notable improvements in profitability ratios over the observed periods, alongside relatively stable tax burden figures and a gradual increase in interest burden.

Tax Burden
The tax burden ratio remained quite stable from 2021 through 2024, fluctuating slightly but consistently around 0.80 to 0.82. This stability indicates a consistent proportion of earnings before tax being paid in taxes, reflecting no significant changes in tax policies or extraordinary tax expenses within the analyzed timeframe.
Interest Burden
The interest burden ratio demonstrates a clear increasing trend, moving from 0.81 in 2021 to 0.92 by 2024. This upward trajectory suggests that the proportion of earnings before interest and taxes retained after interest expense is declining, implying an increasing impact of interest expense on profitability over time. A rising interest burden may point toward higher debt levels or increasing interest rates affecting the company’s financial costs.
EBIT Margin
EBIT margin showed a significant turnaround from a deeply negative figure in 2020 (-45.62%) to positive margins in the subsequent years. It improved sharply to 12.5% in 2021 and continued to increase moderately to peak at 17.24% in 2023 before a slight decrease to 16.72% in 2024. This recovery indicates enhanced operational efficiency or improved core business profitability after 2020, suggesting successful management initiatives or market conditions.
Net Profit Margin
The net profit margin follows a similar recovery pattern, starting from a large negative margin of -44.57% in 2020, improving to 8.2% in 2021, and further rising steadily up to 12.68% in 2023. The slight decline to 12.29% in 2024 suggests some pressure on the bottom line but overall indicates sustained profitability improvements. This progression points to stronger control over all expenses, including operating and financial costs, after the significant losses experienced in 2020.

In summary, the company demonstrated a substantial recovery in profitability commencing in 2021, maintaining positive and improving EBIT and net profit margins over the following years. However, the rising interest burden signals increasing financial costs, which may require attention to maintain profitability levels going forward. The tax burden remains stable, allowing clearer insight into operational and financial performance without fluctuations caused by tax variations.