SLB N.V. (NYSE:SLB)

The liquidity profile exhibits a pattern of stability characterized by moderate fluctuations and a cyclical trend over the analyzed period. Short-term solvency remains consistent, with a general tendency to maintain ratios above critical thresholds, although periodic dips are observable, particularly at the start of the 2023 and 2025 calendar years.

Current Ratio

The current ratio fluctuates within a range of 1.24 to 1.49, indicating a sustained ability to cover short-term liabilities with current assets. A gradual upward trend is observed through mid-2024, reaching a peak of 1.49 on June 30, 2024. This is followed by a contraction to 1.24 by March 31, 2025, before recovering and stabilizing around 1.34 by the end of the period.

Quick Ratio

The quick ratio consistently tracks the movements of the current ratio, moving between 0.78 and 1.02. For the majority of the period, the ratio remains below 1.0, suggesting that a portion of current assets consists of less liquid inventories. However, a period of heightened liquidity is noted between June and December 2024, where the ratio exceeds 1.0, indicating that liquid assets were sufficient to cover current liabilities without relying on inventory sales.

Cash Ratio

The cash ratio remains the most conservative metric, oscillating between 0.20 and 0.36. A low point of 0.20 was recorded on March 31, 2023, followed by a steady increase that peaked at 0.36 on December 31, 2024. The subsequent decline to 0.23 by March 31, 2026, reflects a more lean approach to cash holdings relative to current obligations.

Overall, the alignment of the three ratios suggests a synchronized management of working capital. The peak in liquidity across all metrics during the second half of 2024 indicates a period of strategic accumulation of liquid assets, while the recurring declines in the first quarter of 2023 and 2025 may point to seasonal working capital requirements or scheduled short-term debt repayments.

The liquidity position of the organization demonstrates consistent stability over the analyzed period, with the current ratio remaining above 1.0 in all observed quarters. This indicates a sustained capacity to cover short-term obligations using current assets, maintaining a healthy margin of safety.

Current Asset Trends

A general upward trajectory is observed in current assets, which expanded from 13,253 million USD in March 2022 to 19,335 million USD by March 2026. This growth reflects a steady accumulation of short-term resources, despite minor contractions noted in December 2024 and March 2026.

Current Liability Trends

Current liabilities also experienced overall growth, increasing from 10,696 million USD in March 2022 to 14,413 million USD in March 2026. A significant spike in obligations occurred in March 2025, where liabilities reached a peak of 15,036 million USD, before moderating in the subsequent quarters.

Current Ratio Analysis

The current ratio fluctuated within a range of 1.24 to 1.49. A period of strengthening was observed from March 2022 through June 2024, during which the ratio climbed from 1.24 to its peak of 1.49. This improvement was subsequently reversed in early 2025, as the ratio returned to 1.24, driven by the aforementioned increase in current liabilities. In the final year of the period, the ratio stabilized, ending at 1.34 in March 2026, suggesting a balanced management of short-term assets and obligations.

The liquidity profile exhibits a general upward trajectory in both quick assets and current liabilities, with the quick ratio demonstrating cyclical volatility over the analyzed period. Between March 2022 and March 2026, there was a sustained increase in the absolute volume of liquid assets, though this growth was largely offset by a corresponding rise in short-term obligations.

Quick Asset Trends

Total quick assets grew from 8,362 million US$ in March 2022 to a peak of 12,901 million US$ in September 2025. This growth was most pronounced between early 2022 and the end of 2023, after which assets stabilized within a range between 12,300 and 12,900 million US$.

Current Liabilities Trends

Current liabilities increased from 10,696 million US$ in March 2022 to 14,413 million US$ by March 2026. A significant peak occurred in March 2025, where liabilities reached 15,036 million US$, representing the highest level of short-term obligations observed in the period.

Quick Ratio Performance

The quick ratio fluctuated between a minimum of 0.78 in March 2022 and a maximum of 1.02 in June 2024. A recurring seasonal pattern is observable, where the ratio typically peaks in the third quarter and declines toward the end of the calendar year or the start of the following year. The period in mid-2024 where the ratio exceeded 1.00 indicates a temporary state where liquid assets were sufficient to cover all current liabilities without the need for inventory liquidation.

Liquidity Correlation and Stability

The decline in the quick ratio to 0.83 in March 2025 is directly attributable to the simultaneous peak in current liabilities and a slight contraction in quick assets. Recovery occurred in subsequent quarters as liabilities moderated and assets stabilized, returning the ratio to a range between 0.86 and 0.90 by March 2026.

The analysis of the cash ratio reveals a pattern of moderate volatility, with the ratio fluctuating between a low of 0.20 and a peak of 0.36. The company consistently maintains a liquidity position where cash assets cover a minority fraction of current liabilities, indicating that immediate obligations are not met by cash reserves alone, but likely depend on other current assets or ongoing operational cash flows.

Cash Asset Trajectory

Total cash assets showed a general upward trend for the first several years, increasing from 2,649 million US$ in March 2022 to a maximum of 4,669 million US$ by December 2024. Following this peak, a period of decline and stabilization occurred, with the balance ending at 3,387 million US$ in March 2026.

Current Liabilities Expansion

Current liabilities experienced a sustained increase over the observed period. Obligations grew from 10,696 million US$ in March 2022 to a peak of 15,036 million US$ in March 2025. Despite a slight reduction following that peak, liabilities remained significantly higher at the end of the period compared to the start.

Cash Ratio Performance and Volatility

The cash ratio exhibited cyclical behavior. An initial rise to 0.32 in September 2022 was followed by a sharp decline to 0.20 by March 2023. A recovery phase then ensued, characterized by a steady climb to a period high of 0.36 in December 2024. This peak was followed by a downward trend, with the ratio retreating to 0.23 by March 2026, mirroring the overall increase in liabilities and the reduction in cash holdings during that timeframe.