Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-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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Solvency Ratios (Summary)
SLB N.V., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the quarterly financial ratios reveals several notable trends in the company's leverage and debt management over the observed periods.
- Debt to Equity Ratio
- The company's debt to equity ratio showed a high level at the beginning, peaking around the third quarter of 2020 at 1.49. From that point, there was a sustained and gradual decrease in this ratio, reaching as low as 0.5 by the third quarter of 2025. This decline indicates a strengthened equity base relative to debt, reflecting deleveraging efforts or equity growth surpassing debt increases over time.
- Debt to Capital Ratio
- Similarly, the debt to capital ratio started above 0.5 in early 2020 and exhibited a decreasing trend throughout the period. It dropped from 0.6 in late 2020 to about 0.33 by the third quarter of 2025. This reduction signals improved capital structure with less reliance on debt financing relative to the total capital.
- Debt to Assets Ratio
- This ratio followed a comparable pattern, beginning near 0.4 in 2020 and gradually declining to 0.23 by the end of the period in 2025. The decreasing trend indicates a lower proportion of assets financed through debt, suggesting a potential enhancement in asset quality or financing strategy that favors equity or other non-debt capital sources.
- Financial Leverage Ratio
- Financial leverage decreased from an initial value above 3.1 to approximately 2.15 by late 2025. This decline implies a reduction in the extent to which the company uses debt relative to equity to finance its assets, which could contribute to lower financial risk and interest obligations.
- Interest Coverage Ratio
- The interest coverage ratio data begins from the fourth quarter of 2020 with a significantly negative value (-19.07), indicating an inability at that time to cover interest expenses from operating earnings. However, from early 2021 onwards, the ratio shows a marked improvement, rising steadily to above 12 during 2023 and gradually moderating to around 9.43 by late 2025. This trajectory suggests recovery and increasing operational earnings or lower interest expenses, improving the company's ability to meet interest obligations comfortably.
Overall, the company's financial leverage and debt-related ratios demonstrate a consistent trend towards reduced leverage and improved debt management over the period analyzed. The strengthening interest coverage ratio further supports the view of enhanced financial health and operational performance, reducing the risk associated with debt servicing.
Debt Ratios
Coverage Ratios
Debt to Equity
SLB N.V., debt to equity calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total SLB stockholders’ equity
= ÷ =
The analysis of the quarterly financial data reveals several key trends and insights related to the company’s debt, equity, and leverage position over the period from March 2020 to September 2025.
- Total Debt
-
Total debt exhibits an overall declining trend from $16.6 billion in early 2020 to approximately $12.2 billion by the end of 2022, indicating a significant reduction in liabilities during this period. Following this, debt levels show some fluctuations, with intermittent increases notably around mid-2023 and late 2024, but generally maintaining a downward trajectory into the range of $12.8 billion by late 2025. This pattern suggests a strategy of gradual debt reduction punctuated by occasional borrowing or refinancing activities.
- Total Stockholders’ Equity
-
Stockholders’ equity demonstrates a steady and consistent increase across the observed quarters, starting from about $15.6 billion at the beginning of 2020 and rising progressively to over $25.6 billion by the third quarter of 2025. This upward movement reflects continuous growth in retained earnings and possibly successful capital raising or asset appreciation, contributing positively to the company’s net worth and financial stability.
- Debt to Equity Ratio
-
The debt to equity ratio shows marked improvement over the timeframe analyzed. Initially positioned at around 1.07 in the first quarter of 2020, it peaked in mid to late 2020 at approximately 1.49, indicating a relatively high leverage. From late 2020 onwards, the ratio declines steadily, reaching a low near 0.5 by late 2025. This declining leverage ratio is consistent with the trends observed in debt reduction and equity growth, signaling enhanced solvency and lower financial risk. A slight uptick in the ratio occurs around mid-2025 but is followed by a significant decrease, reinforcing the trend towards financial strengthening.
Debt to Capital
SLB N.V., debt to capital calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
- Total Debt
- The total debt has shown a fluctuating but generally declining trend from March 2020 through December 2025. Starting at 16,642 million US dollars in March 2020, debt peaked around September 2020 at 17,763 million, then gradually decreased to 11,965 million by December 2023. There was a moderate rebound in some subsequent quarters, with debt increasing to approximately 13,998 million by June 2025, before declining again to 12,766 million by September 2025. Overall, total debt indicates a long-term reduction with intermittent short-term increases.
- Total Capital
- Total capital fluctuated within a range but showed an overall upward trend over the analyzed period. Beginning at 32,203 million US dollars in March 2020, it experienced some volatility with lows around 28,485 million in June 2021 and highs near 34,401 million by September 2025. The capital base expanded gradually after mid-2022, stabilizing above 32,000 million from early 2023 onwards and reaching the highest reported value near the end of the series. This suggests strengthening capital resources over time.
- Debt to Capital Ratio
- The debt to capital ratio declined noticeably from 0.52 in March 2020 to approximately 0.33 by September 2025. The ratio peaked around September 2020 at 0.60, then steadily decreased, reflecting the reduction in debt relative to total capital. This downward trend signifies an improving leverage position, indicating that the company has been reducing its reliance on debt financing in proportion to its capital base over the observed periods.
- Summary of Financial Position Trends
- Overall, the financial data depicts a company improving its leverage profile by reducing the relative amount of debt in the capital structure. While total debt has fluctuated, the predominant direction is downward, especially notable from late 2020 onwards. Concurrently, total capital has generally increased, enhancing the company’s ability to support its debt load. As a result, the debt to capital ratio shows a clear and steady improvement, suggesting a more conservative and potentially more stable financial structure as of the latest periods analyzed.
Debt to Assets
SLB N.V., debt to assets calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
The financial data indicates several noteworthy trends in the company's debt structure and asset base over the given periods.
- Total debt
- Total debt levels fluctuated over the analyzed quarters. Initially, there was an upward trend, peaking around the third quarter of 2020, followed by a general declining pattern through to the end of 2021. In 2022, total debt continued to decrease, reaching its lowest level by December 2022. However, in 2023 and early 2024, the debt levels exhibited moderate increases and some volatility, with an observable peak in the second quarter of 2025 before a slight decline towards the third quarter of the same year.
- Total assets
- Total assets showed an overall increasing trend with some fluctuations. The figures started relatively high in early 2020, dipped through late 2020 and early 2021, but began a recovery from mid-2021 onwards. The asset base consistently increased through 2023 and 2024, reaching a new high by the end of the period analyzed in late 2025. This indicates an expansion or reinvestment in assets over the long term despite short-term variability.
- Debt to assets ratio
- The debt to assets ratio exhibited a declining trend from early 2020 through 2024, decreasing from 0.34 to a low of 0.23 by late 2025. This decline suggests an improvement in the company's leverage position, reflecting either a reduction in debt, an increase in assets, or a combination of both. The ratio showed a noticeable decline especially from mid-2021 onwards, highlighting a potentially more conservative financial structure or enhanced asset valuation.
In summary, the data reflects a company that initially increased its leverage but subsequently managed to reduce debt relative to its assets. The total asset growth alongside debt reduction points to strengthening financial stability and improved solvency over the examined period. The lower debt-to-asset ratio towards the later quarters suggests a more robust balance sheet and potentially better creditworthiness.
Financial Leverage
SLB N.V., financial leverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total SLB stockholders’ equity
= ÷ =
The financial data reveals several key trends relating to total assets, stockholders’ equity, and financial leverage over the analyzed periods.
- Total Assets
-
Total assets display a generally fluctuating pattern with an initial decline from approximately 48.6 billion US dollars at the end of the first quarter of 2020 to about 42 billion US dollars by mid-2021. Subsequently, total assets gradually increased, reaching a peak near 49.8 billion in early 2025. Notable is a sharp rise at the end of the latest period, reaching roughly 55.1 billion US dollars by the quarter ending September 2025. This suggests periods of both asset contraction and expansion, with a strong recovery and growth towards the most recent quarters.
- Total Stockholders’ Equity
-
Equity levels experienced a significant decline early in the timeframe, dropping from about 15.6 billion US dollars in the first quarter of 2020 to roughly 12 billion by mid-2020. Thereafter, equity demonstrated a steady upward trajectory, consistently increasing across subsequent quarters and peaking at approximately 21.5 billion in early 2024. Following this peak, equity briefly decreased, nearing 19.5 billion mid-2025, before experiencing a substantial increase to approximately 25.6 billion by the quarter ending September 2025. The overall trend indicates recovery and growth in equity capital, with some short-term variability in the most recent periods.
- Financial Leverage
-
Financial leverage started high at about 3.12 at the start of 2020, reaching its highest point near 3.71 by mid-2020. From that point, a notable and steady decline occurred, decreasing the leverage ratio consistently down to around 2.15 by the third quarter of 2025. This declining financial leverage ratio points to a reduction in the reliance on debt relative to equity, indicating a strengthening equity base or deleveraging strategy during the latter periods.
In summary, the periods covered show initial impacts reflected in asset contraction and reduced equity, followed by a recovery phase where assets and equity expanded steadily. The decreasing financial leverage ratio highlights a shift towards a more conservative capital structure with reduced financial risk. The sharp rise in total assets and equity in the most recent quarters may reflect strategic investments or capital injections aimed at supporting future growth.
Interest Coverage
SLB N.V., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= ( + + + )
÷ ( + + + )
=
The earnings before interest and tax (EBIT) demonstrate a significant recovery and consistent growth over the analyzed period. Initially, the EBIT was deeply negative at -7,953 million US dollars but showed a steady improvement to reach positive territory by the third quarter of 2020. From that point, EBIT has maintained a generally upward trend, with only minor fluctuations, reaching a peak of 1,643 million US dollars in the third quarter of 2024. Towards the end of the period, EBIT exhibits a slight decline but remains positive, indicating improved operating profitability overall.
Interest expense remains relatively stable throughout the periods, fluctuating mildly between 113 million and 147 million US dollars. There is no significant upward or downward trend in interest expense, suggesting that the company's debt service costs have been managed consistently without major changes in borrowing levels or interest rates during this timeframe.
The interest coverage ratio shows a marked improvement corresponding to the trend in EBIT. Initially, no values are available, but starting in late 2020, the ratio rises from a deeply negative figure of -19.07 to over 9 by the end of the dataset. This upward trajectory indicates that the company's ability to cover its interest obligations from operating earnings has strengthened considerably. By mid to late 2024, the interest coverage ratio stabilizes around a range of 9 to 12 times, confirming strong and sustained financial health in terms of interest coverage.
- Earnings Before Interest and Tax (EBIT):
- Recovered from large losses in early 2020 to consistent positive and increasing values through 2025, signaling improved operational performance.
- Interest Expense:
- Remained stable with minor fluctuations, indicating steady debt servicing costs without significant new borrowing or interest rate changes.
- Interest Coverage Ratio:
- Improved sharply from negative values to a stable and healthy range between 9 and 12, reflecting enhanced capacity to meet interest obligations from operations.