SLB N.V. (NYSE:SLB)

The analysis of the quarterly financial ratios indicates several notable trends in asset and equity efficiency over the examined periods.

Net Fixed Asset Turnover

This ratio demonstrates a general upward trend beginning from the earliest available data in March 2020. Starting at a level around 3.46, it steadily increases through the years, peaking approximately at 4.93 in September 2024. This growth reflects a progressively improved efficiency in utilizing net fixed assets to generate sales. There is a slight decline after the peak, with values moderating to 4.41 by September 2025, suggesting a mild decrease or stabilization in fixed asset utilization efficiency in the most recent quarters.

Total Asset Turnover

The total asset turnover ratio initially starts from a lower point of about 0.56 in March 2020 and shows a gradual and consistent increase over the period. It rises steadily to reach about 0.74 by September 2025, reflecting an enhanced ability to generate revenue from total assets. There is a noticeable steady increase without sharp fluctuations, which suggests effective management of the asset base relative to sales generation. However, a slight drop to 0.64 is observed in the last reported quarter, indicating some recent contraction in asset efficiency.

Equity Turnover

The equity turnover ratio begins high at 1.96 in March 2020 but declines in the subsequent periods down to its lowest point near 1.37 by the end of the reporting period in September 2025. Between these periods, the ratio exhibits fluctuations with a downward trajectory, particularly from the mid-period lows around 1.53 to 1.66, then increasing moderately but not recovering to early levels. This trend suggests a reduced rate at which the company is generating sales from equity, potentially signalling either growth in equity not matched by sales growth or diminishing operational efficiency concerning equity utilization.

Overall, the asset turnover ratios (both net fixed asset and total asset turnover) indicate improving trends in the efficiency of asset use over the timeframe, with net fixed assets showing stronger gains. Conversely, the equity turnover ratio trends downward, implying some concerns over the effectiveness in using equity to drive sales. The recent slight declines in all three ratios at the end of the reporting horizon may suggest emerging pressures or changing conditions impacting operational efficiency.

Revenue Trends

The revenue figures exhibit notable fluctuations over the observed periods. Initially, revenues decreased substantially from 7,455 million USD in the first quarter of 2020 to a low of 5,223 million USD in the first quarter of 2021. Following this trough, a consistent upward trajectory is observed, culminating in a peak around the fourth quarter of 2024 with revenues nearing 9,284 million USD. The data suggests a recovery phase starting mid-2021, with growth stabilizing at high levels through early 2025, albeit with minor dips in certain quarters such as the first quarter of 2025.

Fixed Assets Less Accumulated Depreciation

There is a declining trend in the net value of fixed assets from 8,550 million USD in the first quarter of 2020 to approximately 6,354 million USD by the first quarter of 2022. This decline slows and stabilizes thereafter, with gradual increases noted from late 2022 onward, reaching approximately 7,999 million USD by the last quarter of 2025. This pattern implies significant asset disposals or depreciation early in the period, followed by reinvestments or acquisitions that replenished the asset base in the latter years.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, calculated from late 2020 onwards, reveals a clear and continuous improvement over time. Starting from a value of 3.46 in the third quarter of 2020, the ratio steadily rises to reach a maximum of 4.93 by the second quarter of 2025, before slightly declining in the final observed quarter to 4.41. This trend indicates an increasing efficiency in generating revenue relative to the net fixed assets held, reflecting better utilization or enhanced operational performance of fixed asset investments.

Overall Insights

The combined analysis of revenue, net fixed assets, and their turnover ratio suggests a phase of contraction in fixed assets coinciding with reduced revenues during early 2020 to early 2021. This period may reflect challenging market conditions or strategic downsizing. However, subsequent quarters demonstrate recovery and growth, characterized by reinvestment in fixed assets and improved asset utilization. The enhanced asset turnover ratio illustrates operational efficiency gains, which likely support the observed revenue growth. The data points to a strengthening financial performance with the company effectively leveraging its fixed asset base to expand sales.

The financial data reveals several notable trends for the periods analyzed. Revenue demonstrates a general upward trajectory with fluctuations. After a decline in the early quarters of 2020, revenue began a gradual recovery, peaking in the fourth quarter of 2023 and maintaining relatively strong levels through 2025, despite slight volatility in some quarters.

Total assets present a differing pattern compared to revenue. There is a decline from the first quarter of 2020 through mid-2021, followed by a gradual recovery and growth trend from late 2021 onward. Noteworthy is the peak in total assets in the final quarter of 2024, where assets reach their highest value within the observed timeframe.

Total asset turnover ratio, available from the third quarter of 2020, generally improves over time, indicating increasing efficiency in using assets to generate revenue. Starting from 0.56 in the third quarter of 2020, the ratio shows a steady rise, peaking around 0.74 in several quarters between 2024 and 2025, before a slight decline to 0.64 in the final quarter of the data set. This suggests enhanced operational effectiveness, although the most recent dip may warrant monitoring.

Revenue Trends

Revenue dropped significantly in early 2020 but rebounded steadily from mid-2020. The highest revenue is observed in the fourth quarter of 2023, with consistent strength maintained thereafter. However, some quarterly fluctuations indicate variability in market conditions or operational performance.

Total Assets Movement

Assets decreased during 2020 and early 2021, reflecting possible asset disposals or valuation adjustments. From late 2021, assets showed recovery and growth, culminating in the highest recorded figure in late 2024, which might indicate investment in fixed or current assets or acquisition activity.

Total Asset Turnover Efficiency

The upward trend in total asset turnover ratio indicates improved efficiency in asset utilization, with the company generating more revenue per unit of asset over time. The ratio's peak around 0.74 suggests optimal operational performance during 2024 and early 2025, slightly weakening at the end of the period.

Overall, the data reflects a company recovering from early period challenges, improving its asset usage efficiency, and striving to grow revenue, albeit with some fluctuations. The increase in asset base combined with a rising turnover ratio points to effective management of resources toward revenue generation. Continued observation of the recent slight decreases in asset turnover and revenue volatility is advisable for comprehensive performance assessment.

Revenue Trends

Revenue experienced significant fluctuations over the observed period. Beginning at 7,455 million USD in March 2020, it declined sharply during the next two quarters, reaching a low of 5,223 million USD in March 2021. Following this downturn, a consistent upward trajectory is observable, with revenue increasing steadily to a peak of 9,284 million USD by December 2024. Towards the end of the period, between March 2025 and September 2025, revenue shows some signs of volatility, declining to 8,490 million USD before rising again to 8,928 million USD. Overall, after initial declines coinciding with the early part of 2020, the company demonstrated recovery and growth in revenue thereafter.

Total Stockholders’ Equity

Total stockholders' equity also reflects notable changes. Starting at 15,561 million USD in March 2020, equity dropped to around 11,941 million USD by September 2020. From this low point, equity increased steadily quarter over quarter, reaching 21,511 million USD in March 2025. However, subsequent quarters show some inconsistency, with equity decreasing to 19,515 million USD in June 2025 and then recovering to 25,635 million USD by September 2025. The overall trend indicates improved equity levels since mid-2020, consistent with the revenue growth pattern, though the fluctuations towards the end warrant closer attention to equity management and capital structure.

Equity Turnover Ratio Analysis

Equity turnover ratio data is available from December 2020 onward. The ratio began at 1.96 in December 2020 and showed a gradual decrease to approximately 1.53 by March 2022. From this point, the ratio generally increased, fluctuating between 1.52 and 1.72 for most quarters until June 2025. A marked decline to 1.37 was noted in September 2025. The equity turnover ratio trends suggest that the company’s efficiency in generating revenue from shareholders' equity weakened slightly after 2020 but picked up pace again before the recent decline. This implies periods of varying operational efficiency and indicates areas for potential improvement in asset utilization relative to equity.

Overall Financial Insights

The data reveals a company recovering from an initial downturn in early 2020, with both revenue and equity showing significant growth trends from mid-2020 onward. The equity turnover ratio's fluctuations point to changing efficiency levels, potentially influenced by market conditions or internal strategic shifts. The recent declines in some metrics towards the final quarters suggest cautious monitoring is necessary to sustain growth momentum and stabilize operational efficiency.