Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Profitability Ratios (Summary)
SLB N.V., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
Profitability metrics exhibit a distinct cyclical pattern over the analyzed period, characterized by a sustained expansion phase from early 2022 through late 2024, followed by a contraction phase throughout 2025 and early 2026.
- Profitability Margins
- Gross profit margin demonstrated a consistent upward trajectory, rising from 16.43% in March 2022 to a peak of 20.56% by December 2024. This growth trend reversed in 2025, with the margin receding to 17.34% by March 2026.
- Operating profit margin followed a similar growth path, increasing from 12.56% in March 2022 to a peak of 16.55% in March 2024. A gradual decline ensued, accelerating in 2025 to reach 11.87% by the end of the period.
- Net profit margin showed the fastest initial growth, climbing from 8.84% in March 2022 to peak at 12.97% in September 2023. It remained relatively stable around the 12% mark until early 2024, after which it entered a downward trend, ending at 9.26% in March 2026.
- Return Ratios
- Return on equity (ROE) expanded significantly from 13.63% in March 2022, maintaining a level above 20% from March 2023 through March 2025, where it peaked at 21.47%. A sharp contraction occurred thereafter, with ROE falling to 12.72% by March 2026.
- Return on assets (ROA) increased steadily from 4.98% in March 2022 to a peak of 9.12% in December 2024. Similar to the margin trends, ROA declined throughout 2025, concluding at 6.11% in March 2026.
The synchronicity between the decline in margins and the contraction of return ratios beginning in 2025 suggests a broad systemic reduction in profitability. The most pronounced degradation in performance is observed in the final four quarters of the period, where both ROE and operating margins retreated to levels near their 2022 starting points.
Return on Sales
Return on Investment
Gross Profit Margin
SLB N.V., gross profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
An analysis of the profitability trajectory reveals a distinct cycle of margin expansion followed by a period of contraction between March 2022 and March 2026. The gross profit margin exhibited a consistent upward trend for nearly three years before entering a steady decline in 2025.
- Margin Expansion Phase (March 2022 – December 2024)
- A period of sustained growth is observed, with the gross profit margin increasing from 16.43% in the first quarter of 2022 to a peak of 20.56% by the end of 2024. This expansion coincided with a significant rise in revenue, which grew from 5,962 million USD to 9,284 million USD over the same period. The simultaneous increase in both absolute gross margin and percentage margin suggests improved operational efficiency, better pricing power, or a favorable shift in the cost of sales.
- Margin Contraction Phase (January 2025 – March 2026)
- Following the peak in December 2024, a consistent downward trend in the gross profit margin is evident, falling to 17.34% by March 2026. Notably, this decline occurred even as revenue reached its highest point of 9,744 million USD in December 2025. The divergence between record revenues and shrinking margins indicates a compression of profitability, likely driven by escalating production costs or pricing pressures that outpaced revenue growth.
- Revenue and Absolute Gross Margin Correlation
- While revenue generally trended upward throughout the observed period, absolute gross margin exhibited higher volatility in the final year. The absolute gross margin peaked at 1,961 million USD in December 2024 but decreased to 1,331 million USD by March 2026. This suggests that the decline in the profit margin percentage was not merely a result of revenue fluctuations but a fundamental decrease in the profitability of each dollar of revenue generated.
Operating Profit Margin
SLB N.V., operating profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The financial performance exhibits a distinct bell-shaped trajectory in operational efficiency over the analyzed period, characterized by an initial phase of margin expansion followed by a period of sustained contraction.
- Operating Profit Margin Trend
- A consistent upward trend is observed from March 2022, where the margin stood at 12.56%, reaching a peak of 16.55% in March 2024. This growth period reflects an increase in operational efficiency as operating income grew at a faster rate than revenue. Following this peak, a steady reversal occurred, with the margin declining to 11.87% by March 2026.
- Revenue and Operating Income Correlation
- Between March 2022 and September 2024, revenue and operating income grew concurrently, with operating income rising from 711 million to a high of 1,547 million. However, a divergence appeared in the latter half of the period. Despite revenue reaching a maximum of 9,744 million in December 2025, operating income trended downward, falling to 997 million in the same quarter.
- Analysis of Margin Compression
- Significant margin erosion is evident between March 2025 and March 2026, during which the operating profit margin dropped from 15.39% to 11.87%. This downward trajectory indicates that operating expenses increased at a rate disproportionate to revenue growth, resulting in a marked reduction in profitability per unit of sales.
Net Profit Margin
SLB N.V., net profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025
+ Net income attributable to SLBQ2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The net profit margin exhibited a cyclical trajectory over the analyzed period, characterized by an initial phase of expansion, a period of relative stability, and a subsequent sustained contraction.
- Margin Expansion Phase (March 2022 – March 2023)
- A consistent upward trend in profitability was observed during this period, with the net profit margin increasing from 8.84% to a peak of 12.94%. This growth coincided with a significant rise in quarterly revenue, which grew from 5,962 million USD to 7,736 million USD, suggesting that net income growth outpaced the increase in operational costs.
- Stabilization Period (March 2023 – March 2024)
- The net profit margin entered a period of stabilization, fluctuating within a narrow range between 12.44% and 12.97%. During this interval, revenue continued to scale, reaching 8,707 million USD by March 2024. The stability in margins during this phase indicates a period where cost management remained proportional to the growth in top-line revenue.
- Profitability Compression (June 2024 – March 2026)
- A progressive decline in the net profit margin began in June 2024 (12.56%) and continued through March 2026, ending at 9.26%. This downward trend is particularly notable because it occurred while revenue reached its peak of 9,744 million USD in December 2025. The divergence between increasing revenue and decreasing net profit margins suggests a rise in operating expenses or a decrease in pricing power during the latter half of the analyzed period.
- Net Income Divergence
- While revenue showed a general upward trend for the majority of the period, net income peaked in September 2024 at 1,186 million USD. Following this peak, net income declined to 752 million USD by March 2026, resulting in the compression of the net profit margin to levels similar to those seen at the start of the 2022 period.
Return on Equity (ROE)
SLB N.V., ROE calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
ROE = 100
× (Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025
+ Net income attributable to SLBQ2 2025)
÷ Total SLB stockholders’ equity
= 100 × ( + + + )
÷ =
The analysis of profitability ratios reveals three distinct phases in the return on equity (ROE) trajectory: an initial period of rapid expansion, a prolonged stage of stabilization, and a recent period of contraction.
- Growth and Acceleration Phase (March 2022 – December 2022)
- A consistent upward trend in ROE is observed during this period, rising from 13.63% to 19.46%. This growth was primarily driven by a significant increase in quarterly net income, which more than doubled from 510 million USD in March 2022 to 1,065 million USD by December 2022, outpacing the growth of stockholders' equity.
- Stability and Plateau Phase (March 2023 – December 2024)
- ROE entered a phase of high stability, fluctuating within a narrow range between 20.82% and 21.47%. During this window, net income remained relatively steady, peaking at 1,186 million USD in September 2024. The proportionality between net earnings and the expanding equity base remained constant, maintaining a consistent return profile for shareholders.
- Contraction Phase (March 2025 – March 2026)
- A marked decline in ROE is evident starting in mid-2025, with the ratio dropping from 21.47% in March 2025 to 12.72% by March 2026. This contraction is the result of two simultaneous factors: a decrease in quarterly net income, which fell to a low of 739 million USD in September 2025, and a substantial increase in total stockholders' equity, which grew from 19,515 million USD in March 2025 to 26,177 million USD by March 2026.
The overall data indicates that while the company successfully scaled its profitability and equity base through 2024, the most recent quarters show a decoupling of these metrics. The expansion of the equity base, combined with softer net income figures, has led to a dilution of the return on equity, returning the ratio to levels similar to those observed at the beginning of the analyzed period.
Return on Assets (ROA)
SLB N.V., ROA calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
ROA = 100
× (Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025
+ Net income attributable to SLBQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
The analysis of the return on assets (ROA) reveals three distinct phases: a period of rapid improvement, a period of sustained peak efficiency, and a subsequent decline in asset productivity.
- Initial Expansion and Efficiency Gains (2022)
- A significant upward trajectory in profitability is observed from March 2022 to December 2022. During this interval, net income attributable to SLB grew from 510 million to 1,065 million, while total assets increased more moderately from 41,967 million to 43,135 million. Consequently, the ROA rose from 4.98% to 7.98%, reflecting a substantial improvement in the ability to generate earnings from the existing asset base.
- Stabilization and Peak Performance (2023 – 2024)
- From March 2023 through December 2024, the ROA remained relatively stable at elevated levels, fluctuating within a narrow range between 8.76% and 9.12%. This period is characterized by consistent net income levels, typically exceeding 1 billion, and a gradual expansion of the asset base to 48,935 million by the end of 2024. The stability of the ROA during this phase indicates that asset growth was well-aligned with income generation, maintaining high operational efficiency.
- Contraction and Asset Dilution (2025 – 2026)
- A downward trend in ROA is evident beginning in March 2025, with the ratio declining to 6.11% by March 2026. This deterioration is attributed to two simultaneous factors: a decrease in quarterly net income, which fell to 752 million by the end of the period, and a marked increase in total assets, which peaked at 55,093 million in September 2025. The expansion of the asset base during a period of declining earnings resulted in a significant reduction in the return generated per unit of asset.