SLB N.V. (NYSE:SLB)

The company's financial performance over the analyzed periods demonstrates notable trends in key profitability and leverage metrics.

Return on Assets (ROA)

The ROA exhibited a significant negative value of -24.79% in late 2020, followed by a noticeable recovery trajectory. Starting from early 2021, the ROA gradually improved, turning positive and increasing steadily up to approximately 9% by late 2023. This upward trend slightly plateaued and fluctuated around 8.5-9% through mid-2025, with a final observed decrease to around 6.6% in late 2025. Overall, the data reflects a strong recovery in asset profitability after the 2020 downturn, sustaining healthy levels across recent years.

Financial Leverage

Financial leverage ratios decreased consistently from a high above 3.7 in mid-2020 to below 2.5 by the end of 2022, indicating a reduction in the reliance on debt or borrowed capital relative to equity. From 2023 onwards, the leverage ratio remained relatively stable, fluctuating modestly around values between 2.15 and 2.5. This suggests a deliberate effort to maintain moderate leverage levels, aligning with prudent risk management and capital structure optimization.

Return on Equity (ROE)

The ROE initially showed an extreme negative value of -87.13% in late 2020, mirroring the adverse performance seen in ROA during the same period. Subsequently, a strong recovery was observed, with ROE increasing sharply and reaching levels above 20% by late 2022. This elevated profitability on equity was sustained, with ROE fluctuating between approximately 20% and 21.5% through early 2025. However, a marked decline is noted toward the last data points, with ROE dropping to around 14.2% in late 2025. This pattern indicates robust shareholder returns following the initial crisis, though recent declines may signal emerging challenges or changing market conditions.

In summary, the company experienced a significant financial setback around 2020, reflected in negative returns on assets and equity alongside high financial leverage. Since then, there has been considerable recovery and stabilization. Profitability ratios improved substantially and were maintained at strong levels over several years. Leverage was reduced markedly and held steady at lower levels. The recent downturns in ROA and ROE toward the end of the observed timeline should be monitored further to understand potential causes and implications for future financial performance.

Net Profit Margin

The net profit margin demonstrated a significant improvement over the analyzed period. Initially, there was a notable loss indicated by a margin of -44.57%, followed by gradual recovery moving into positive territory by mid-2020. Subsequently, the margin consistently increased, peaking around 12.97% by the end of 2023. Post-2023, the margin maintained stability around the 12% mark before showing a slight decline toward 10.34% by the third quarter of 2025.

Asset Turnover

Asset turnover showed a steady and consistent upward trend throughout the period. Starting at 0.56 in early 2021, this ratio gradually rose to a peak near 0.74 during mid-2025. This suggests progressively improved efficiency in utilizing assets to generate revenue. Toward the last recorded quarters, a minor decline occurred, settling at 0.64 by the third quarter of 2025.

Financial Leverage

Financial leverage exhibited a declining trend overall from the beginning to the end of the timeframe. Initially high at 3.12 and peaking above 3.7 early on, the ratio steadily decreased, indicating reduced reliance on debt financing relative to equity. By late 2024 and into 2025, the leverage stabilized around 2.3 to 2.5, concluding at approximately 2.15 in the third quarter of 2025, marking a substantial reduction from the earlier highs.

Return on Equity (ROE)

ROE mirrored the net profit margin's initial volatility, starting with a severely negative figure of -87.13% followed by progressive recovery into positive territory by late 2020. After fluctuating in the single-digit range, the ratio steadily climbed, reaching a peak above 21% in early 2024. After this peak, ROE showed some moderation but remained strong, ending near 14.22% in the third quarter of 2025. This pattern reflects improved profitability and efficient equity utilization over time despite recent moderation.

The analysis of the financial ratios over multiple quarterly periods reveals several notable trends in the company's operational efficiency, profitability, and financial structure.

Tax Burden

The tax burden ratio displays a relatively stable pattern over the observed timeframe, consistently hovering around 0.8 to 0.82 from the third quarter of 2020 through mid-2025. This stability suggests a consistent tax environment or effective tax management practices that have not significantly fluctuated during this period.

Interest Burden

There is a clear upward trend in the interest burden ratio starting from approximately 0.7 in late 2020 to around 0.9 by mid-2025. This improvement indicates a gradual increase in earnings before interest and taxes relative to earnings before taxes, reflecting reduced interest expense impacts or improved interest coverage over time.

EBIT Margin

EBIT margins demonstrate a marked recovery and growth trajectory. Initially, this margin was negative at around -45.62% in late 2020, but there was a swift transition to positive territory by mid-2021, continuing an upward trend to consistently high teens percentages (around 16-17%) by the early 2020s. This improvement indicates strengthening operational profitability and enhanced efficiency in generating earnings from core business activities.

Asset Turnover

Asset turnover ratios show a general increasing trend from about 0.51 in mid-2020 to a peak of 0.74 towards late 2024, before a slight dip to 0.64 by the last quarter reported. The rising trend in asset turnover underscores more effective utilization of assets to generate sales revenue, although some slight volatility towards the end may merit monitoring.

Financial Leverage

Financial leverage ratios decreased steadily from approximately 3.12 in early 2020 to 2.15 by the end of the recorded period. This reduction indicates a decline in the use of debt relative to equity, suggesting a conservative approach to capital structure or deleveraging efforts to reduce financial risk.

Return on Equity (ROE)

Return on equity follows a trajectory similar to EBIT margin, starting from deeply negative levels (-87.13%) in late 2020 and improving significantly to approximately 21% by mid-2024. A slight decline occurs in the final quarters but remains robust above 14%. This pattern reflects a turnaround in profitability and increased value generation for shareholders, driven by both operational improvement and controlled leverage.

Overall, the financial ratios illustrate a company undergoing notable recovery and improvement after a period of financial distress. Operational margins and profitability have improved substantially, asset utilization has increased, and financial risk metrics such as leverage have been reduced. The interest burden and tax burden ratios contribute to this positive outlook by indicating efficient management of interest expenses and stable tax impacts. These trends collectively suggest enhanced financial health and stronger performance going forward.

The financial performance indicators demonstrate a clear recovery and subsequent stabilization over the period analyzed.

Net Profit Margin

The net profit margin experienced a significant negative value in late 2020, reaching as low as -44.57%, which indicates a period of substantial losses. However, from early 2021 onward, there is a consistent upward trend, turning positive by June 2021. The margin improves steadily, peaking around 12.97% in late 2023. Following this peak, the margin exhibits a slight gradual decline but remains relatively stable above 10% through mid-2025. This pattern suggests improved profitability and operational efficiency post-2020 challenges.

Asset Turnover

The asset turnover ratio, not reported until early 2021, starts at 0.56 and shows a general upward trajectory with minor fluctuations. It rises steadily reaching approximately 0.74 in mid-2025, indicating gradually enhanced efficiency in utilizing assets to generate revenue. There is a minor dip at the very end of the timeline, suggesting a slight slowdown but overall maintaining an improved efficiency relative to the start of the reported period.

Return on Assets (ROA)

ROA mirrors the trends seen in profitability, starting at a highly negative value of -24.79% in late 2020, signaling significant losses or asset base challenges. From 2021 onwards, ROA steadily improves, becoming positive by mid-2021 and peaking near 9.12% in early 2025. Post-peak, ROA declines slightly to around 6.62% by late 2025 but maintains a fairly high level compared to the initial values. This trend confirms better asset productivity coupled with improved profit generation over time.

Overall, the data indicate a recovery phase from a difficult financial position in 2020, followed by steady improvements in profitability, operational efficiency, and asset utilization. Although some indicators show slight declines after their respective peaks, the company sustains a relatively strong financial performance through 2025 compared to the initial period under review.

The financial indicators demonstrate a notable recovery and stabilizing trend over the analyzed periods. Initially, the company faced significant challenges, reflected in negative EBIT Margin and Return on Assets (ROA) values. However, these metrics improved steadily, indicating enhanced operational efficiency and profitability.

Tax Burden

The tax burden shows a consistent ratio around 0.8 from mid-2020 onwards, suggesting stability in the effective tax rate affecting the company's earnings over several years.

Interest Burden

This ratio improves from 0.7 and progressively increases to near 0.9, denoting a reduction in interest expense relative to earnings before interest and taxes. This trend implies better management of financial costs or reduced reliance on debt financing.

EBIT Margin

Beginning with a deeply negative margin in early 2020, the EBIT Margin transitioned to positive territory mid-2020 and steady growth followed. From under 9% in early 2021 to a peak near 17.6% by late 2023, this reflects improving operating profitability. A slight gradual decline is observable towards the final periods, possibly indicating emerging cost pressures or revenue challenges.

Asset Turnover

This metric reveals continuous improvement, rising from about 0.51 to peaks around 0.74 in 2024. This suggests enhanced efficiency in asset utilization to generate sales. A minor decrease towards 0.64 in the latest period may warrant monitoring.

Return on Assets (ROA)

Closely mirroring EBIT Margin trends, ROA moves from deep negative values to progressively increasing positive returns, surpassing 9% around 2023-2024 before a moderate dip in the last periods. This indicates purposeful strides in converting assets into net income effectively, albeit with some volatility toward the end.

Overall, the data reflect a transformation from early financial difficulties to improved operational leverage and profitability. The increment in interest and tax burden ratios, combined with gains in EBIT Margin, Asset Turnover, and ROA, highlights enhanced financial health. Nevertheless, minor recent declines in profitability and asset efficiency suggest the need for continued vigilance.

The financial data exhibits clear trends in key profitability and burden ratios over the analyzed periods. Initially, both margin metrics and burden ratios show volatility with gradual stabilization and improvement as time progresses.

Tax Burden Ratio

The tax burden ratio demonstrates a generally stable pattern from its first reported value. Starting around 0.78, it slightly rises to approximately 0.82 in subsequent quarters and then returns near 0.80 toward the most recent periods. This stability suggests relatively consistent tax obligations relative to earnings over time.

Interest Burden Ratio

This ratio shows a noticeable upward trend, increasing from about 0.7 to a peak near 0.92. After the initial value, the interest burden improves steadily, reflecting reduced interest expenses or improved earnings before interest and taxes. Slight declines are visible in the last few quarters, but the ratio remains high, indicating efficient interest cost management.

EBIT Margin

The EBIT margin exhibits significant improvements over the quarters covered. Initially negative, with sharp losses evident (down to nearly -46%), it progresses to positive territory and reaches a peak around the mid-to-high teens percentage range (approximately 17.5%) in later periods. A mild declining trend is observable after the peak, but margins stay robust, suggesting a turnaround and subsequently maintained operational profitability.

Net Profit Margin

The net profit margin follows a similar trajectory to the EBIT margin, starting with substantial negative values (around -45%) and improving steadily to double-digit positive figures (roughly 12.9%). The margin remains relatively stable thereafter with moderate fluctuations, demonstrating enhanced bottom-line profitability. Some recent quarters indicate a slight downward adjustment but margins remain positive overall.

In summary, the data reflects a notable recovery from initially negative profitability toward consistent and positive margins, accompanied by stable tax impacts and improved interest cost efficiency. Minor declines in profitability margins in the most recent quarters could warrant monitoring, but overall, the financial indicators suggest enhanced operational and financial performance over the covered timeframe.