Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Liquidity Ratios (Summary)
SLB N.V., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio exhibited a gradual upward trend over the analyzed period. It started at 1.23 in 2020 and showed a slight decrease in 2021 to 1.22. From 2021 onward, it steadily increased each year, reaching 1.45 by the end of 2024. This indicates an improving ability to cover short-term liabilities with current assets, reflecting enhanced liquidity management and financial stability over time.
- Quick Ratio
- The quick ratio also showed a positive progression throughout the period. It started at 0.79 in 2020 and increased consistently year by year, reaching 0.99 in 2024. The steady growth demonstrates an improved capacity to meet immediate obligations without relying on inventory sales, suggesting a strengthening in more liquid assets relative to current liabilities.
- Cash Ratio
- The cash ratio presented slight fluctuations but maintained a general upward movement. Beginning at 0.29 in 2020, it rose marginally to 0.30 in 2021, declined to 0.24 in 2022, and then climbed back to 0.3 in 2023, before reaching 0.36 in 2024. This indicates that although cash and cash equivalents relative to current liabilities experienced some variability, overall liquidity in the strictest sense improved by the end of the period.
Current Ratio
SLB N.V., current ratio calculation, comparison to benchmarks
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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
- Current Assets
- Current assets have demonstrated a steady upward trend over the observed five-year period. Starting from US$12,919 million at the end of 2020, the figure experienced a slight decrease in 2021 to US$12,654 million. From 2021 onwards, there was consistent growth, with values rising to US$15,003 million in 2022, US$17,718 million in 2023, and reaching US$18,570 million by the end of 2024. This pattern suggests improving liquidity and an increasing accumulation of short-term resources over time.
- Current Liabilities
- Current liabilities also followed an overall upward trajectory but with more fluctuations compared to current assets. The liabilities increased moderately from US$10,491 million in 2020 to US$10,359 million in 2021, representing a slight decrease. In 2022, the liabilities rose more noticeably to US$12,018 million, then further to US$13,395 million in 2023. Interestingly, there was a reduction to US$12,811 million in 2024 after the previous growth, indicating some management or reduction of short-term obligations in the final year.
- Current Ratio
- The current ratio, which measures short-term financial stability by comparing current assets to current liabilities, exhibited gradual improvement throughout the period. Initiating at 1.23 in 2020, it remained relatively stable in 2021 at 1.22. From 2022 onwards, the current ratio increased, reflecting stronger liquidity: 1.25 in 2022, 1.32 in 2023, and a notable rise to 1.45 in 2024. This suggests an enhanced capacity to meet short-term liabilities with available assets, indicating improved financial health regarding operational liquidity.
Quick Ratio
SLB N.V., quick ratio calculation, comparison to benchmarks
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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
- Liquidity Position
- Over the five-year period, total quick assets demonstrated a consistent upward trend, increasing from US$8,253 million in 2020 to US$12,680 million in 2024. This growth reflects an improving capacity to cover short-term obligations with the most liquid assets.
- Current Liabilities
- Current liabilities showed fluctuations throughout the observed years. An initial decrease was noted from US$10,491 million in 2020 to US$10,359 million in 2021, followed by a rise to US$12,018 million in 2022 and peaking at US$13,395 million in 2023. The most recent figure in 2024 showed a slight decline to US$12,811 million, indicating some stabilization but still a higher level relative to the starting point.
- Quick Ratio
- The quick ratio steadily improved each year, increasing from 0.79 in 2020 to 0.99 in 2024. This upward movement signifies enhanced short-term financial health, as the company's quick assets have grown relative to its current liabilities. The near parity in 2024 suggests the company is almost fully capable of meeting current liabilities without relying on inventory sales.
- Overall Analysis
- The financial data suggest a strengthening liquidity stance for the company over the period under review. The steady rise in quick assets paired with a generally moderate increase in current liabilities has positively influenced the quick ratio. The upward trajectory of the quick ratio, approaching a value of 1, indicates improved efficiency in managing liquid resources to cover immediate obligations. This trend points to prudent financial management and a reduced risk of liquidity shortfalls in the short term.
Cash Ratio
SLB N.V., cash ratio calculation, comparison to benchmarks
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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
- Total Cash Assets
- The total cash assets showed a fluctuating trend over the five-year period. Initially, there was a slight increase from 3006 million US dollars in 2020 to 3139 million in 2021. However, this was followed by a decrease to 2894 million in 2022. Subsequently, the cash assets rose significantly in 2023 to 3989 million and continued this upward trajectory reaching 4669 million in 2024. Overall, the cash reserves demonstrated growth, particularly in the last two years.
- Current Liabilities
- Current liabilities displayed an increasing trend from 10491 million US dollars in 2020 to a peak of 13395 million in 2023. Following this peak, there was a slight decline to 12811 million in 2024. Despite the minor reduction in the final year, liabilities remained elevated compared to the initial year, indicating higher short-term obligations over the period.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, exhibited variability. Beginning at 0.29 in 2020, it marginally increased to 0.30 in 2021. A decline to 0.24 was observed in 2022, reflecting reduced liquidity relative to liabilities. However, the ratio improved again, reaching 0.30 in 2023 and further rising to 0.36 in 2024. This overall upward trend in the latter years suggests enhanced liquidity and a stronger short-term financial position.
- Summary
- The data reflects an overall improvement in liquidity conditions between 2022 and 2024, driven by rising cash assets alongside a slight reduction in current liabilities in the final year. The cash ratio trends corroborate this, showing enhanced capacity to meet short-term obligations with available cash. Nonetheless, the high level of current liabilities points to sustained reliance on short-term financing or operational expenditures requiring scrutiny to maintain financial stability.