SLB N.V. (NYSE:SLB)

The North America segment of the company exhibits notable fluctuations and trends in its financial metrics over the five-year period ending December 31, 2024.

Revenue

Revenue showed variability, beginning at approximately $5.48 billion in 2020 before declining to $4.47 billion in 2021. Subsequently, revenue increased to $6.00 billion in 2022 and peaked at $6.73 billion in 2023, followed by a slight decrease to $6.68 billion in 2024. This pattern indicates a strong recovery and growth after a drop in 2021, with revenue stabilizing at a higher level than the initial year.

Fixed Assets Less Accumulated Depreciation

Fixed assets net of depreciation decreased from $1.59 billion in 2020 to $1.37 billion in 2021, indicating a reduction in net investment or increased depreciation expense during that year. From 2021 onward, there was a gradual increase to $1.46 billion in 2022 and $1.47 billion in 2023, culminating in a significant rise to $1.81 billion in 2024. This suggests enhanced asset acquisition or capital investment in the most recent year.

Area Asset Turnover

The area asset turnover ratio, which measures how efficiently assets generate revenue, started at 3.45 in 2020 and decreased slightly to 3.26 in 2021. It then improved considerably to 4.11 in 2022 and further increased to 4.58 in 2023, evidencing higher asset utilization or operational efficiency. However, in 2024, the ratio declined to 3.70, implying a reduction in efficiency, possibly due to the substantial increase in asset base that year not yet fully translating into proportional revenue growth.

Overall, the data suggest that the segment experienced a downturn in 2021 followed by a recovery and growth phase through 2023. Asset investments appear to have intensified significantly in 2024, coinciding with a moderate revenue decline and a decrease in asset turnover efficiency. This interplay between asset base expansion and revenue generation could merit further examination to optimize capital deployment and operational performance.

The financial performance of the Latin America geographic area over the five-year period exhibits a consistent upward trajectory in multiple key metrics. Revenue demonstrates a steady increase each year, growing from 3,472 million US dollars in 2020 to 6,719 million US dollars in 2024. This represents a near doubling in revenue, indicating strong growth in sales or service activity within the region.

Fixed assets less accumulated depreciation show a gradual upward moving trend, increasing from 841 million US dollars in 2020 to a peak of 1,071 million US dollars in 2023, before slightly decreasing to 1,044 million US dollars in 2024. This suggests ongoing investment in fixed assets, with some depreciation or asset disposals affecting the slight decline observed in the last year.

The area asset turnover ratio, which measures the efficiency of asset use in generating revenue, has improved markedly from 4.13 times in 2020 to 6.44 times in 2024. This upward trend implies enhanced operational efficiency, with revenue growing at a faster rate than fixed assets, reflecting better utilization of the asset base.

Revenue

Steady increase from 3,472 to 6,719 million US dollars, indicating robust sales growth.

Fixed Assets less accumulated depreciation

Increasing investment with a slight decline in the final year, likely due to depreciation or asset changes.

Area Asset Turnover

Significant improvement from 4.13 to 6.44, denoting increased efficiency in asset utilization.

Overall, the data reflects positive business expansion and improving asset management in the Latin America region over the period analyzed.

Revenue

Over the five-year period, revenue in the Europe & Africa geographic area demonstrates a consistent upward trajectory. Starting at $5,963 million in 2020, revenue experienced a slight decline in 2021 to $5,778 million, followed by a robust recovery and growth in subsequent years, reaching $9,671 million in 2024. This represents an overall increase of approximately 62% from 2020 to 2024, indicating strong market expansion or improved sales performance in the region.

Fixed Assets less Accumulated Depreciation

The net value of fixed assets exhibits a generally stable pattern with minor fluctuations. It begins at $1,840 million in 2020, decreases to $1,690 million in 2021, and further declines slightly to $1,668 million in 2022. This is followed by a modest recovery in 2023 to $1,724 million, maintaining a similar level in 2024 at $1,721 million. The overall trend suggests limited investment in new fixed assets or consistent depreciation rates, with the net asset base remaining relatively unchanged over the period.

Area Asset Turnover

The asset turnover ratio shows a marked improvement, rising steadily from 3.24 in 2020 to 5.62 in 2024. This significant increase implies enhanced efficiency in utilizing the fixed asset base to generate revenue within the Europe & Africa area. The growth in this ratio aligns with the trend of rising revenue against a relatively stable net fixed asset value, suggesting more effective asset management or improved operational performance in the region.

The financial data for the Middle East & Asia geographic area reveals several notable trends across the reported years.

Revenue

There is a clear upward trend in revenue from 2020 to 2024. Revenue decreased slightly from 8,567 million USD in 2020 to 8,059 million USD in 2021 but rebounded strongly afterward, reaching 9,033 million USD in 2022. This growth accelerated in subsequent years, with revenues rising to 11,019 million USD in 2023 and 13,026 million USD in 2024. Overall, this represents a significant increase of over 50% from 2020 to 2024.

Fixed Assets less Accumulated Depreciation

The net fixed assets showed some fluctuation at the start of the period, declining from 2,353 million USD in 2020 to 2,049 million USD in 2021. However, from 2021 onward, the value increased steadily, reaching 2,099 million USD in 2022, 2,468 million USD in 2023, and 2,789 million USD in 2024. This reflects a general growth in the asset base supporting operations in the region, with a noticeable expansion after 2021.

Area Asset Turnover

The area asset turnover ratio, which measures how efficiently the fixed asset base is utilized to generate revenue, increased consistently over the period. Beginning at 3.64 in 2020, the ratio improved to 3.93 in 2021, then to 4.30 in 2022, followed by 4.46 in 2023 and 4.67 in 2024. This steady improvement indicates enhanced efficiency in using assets to generate sales, with each unit of asset investment producing progressively more revenue over time.

In summary, the data demonstrates robust revenue growth supported by increasing investment in fixed assets and enhanced asset utilization efficiency. Despite a slight dip in the initial year, the company has steadily expanded its operations and improved performance, indicating positive business momentum in the Middle East & Asia region.