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
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Profitability Ratios (Summary)
SLB N.V., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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).
The profitability profile exhibits a cyclical trajectory characterized by a prolonged period of expansion followed by a systemic contraction across all measured metrics. From early 2022 through late 2024, there was a consistent improvement in margins and efficiency ratios, which subsequently reversed starting in early 2025.
- Margin Analysis
- Gross profit margin demonstrated a steady upward trend from 16.43% in March 2022 to a peak of 20.56% in December 2024. Following this peak, a consistent decline occurred, returning to 16.54% by June 2026. Operating profit margin followed a similar trajectory, rising from 12.56% in March 2022 to peak at 16.55% in March 2024, before descending to 11.44% by the end of the period. Net profit margin increased from 8.84% in March 2022, stabilizing between 12% and 13% throughout 2023 and early 2024, and subsequently contracting to 8.53% by June 2026.
- Return on Equity (ROE)
- ROE showed significant growth over the first three years, climbing from 13.63% in March 2022 to a peak of 21.47% in March 2025. This period of expansion suggests an increasing efficiency in generating profits from shareholders' equity. However, a sharp correction is observed starting in June 2025, with the ratio falling to 11.89% by June 2026, marking a level lower than the initial 2022 figures.
- Return on Assets (ROA)
- ROA mirrored the broader profitability trend, increasing from 4.98% in March 2022 to a high of 9.12% in December 2024. This indicates a period of enhanced asset utilization and productivity. Similar to other metrics, a downward trend emerged in 2025, with ROA declining to 5.58% by June 2026.
The synchronization of the decline across gross, operating, and net margins suggests that the contraction was driven by factors impacting the core cost of sales and operational overhead, rather than isolated non-operating expenses. The simultaneous drop in ROE and ROA beginning in 2025 indicates a broad reduction in both operational efficiency and the overall return on invested capital.
Return on Sales
Return on Investment
Gross Profit Margin
SLB N.V., gross profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Gross profit margin = 100
× (Gross marginQ2 2026
+ Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The profitability profile exhibits a clear cyclical trajectory, characterized by a sustained expansion in both revenue and gross margin efficiency through the end of 2024, followed by a gradual erosion of margins extending through mid-2026.
- Revenue and Absolute Gross Margin Expansion
- From March 2022 to December 2024, a strong positive correlation is observed between revenue growth and absolute gross margin. Revenue increased from 5,962 million USD to 9,284 million USD, while the gross margin more than doubled from 949 million USD to 1,961 million USD. This phase indicates a period of significant scaling and operational leverage.
- Gross Profit Margin Efficiency
- The gross profit margin percentage demonstrated consistent quarterly improvement for nearly three years, rising from 16.43% in March 2022 to a peak of 20.56% in December 2024. This steady climb suggests a period of enhanced cost management or favorable pricing power relative to the cost of sales.
- Profitability Compression and Margin Decay
- A reversal in the profitability trend began in March 2025, with the gross profit margin declining steadily from 20.42% to 16.54% by June 2026. Notably, the margin percentage started to contract even as revenue continued to rise toward a peak of 9,744 million USD in December 2025. This divergence indicates that the costs associated with generating revenue increased at a faster rate than the revenue itself, leading to a compression of margins despite the temporary increase in top-line scale.
Operating Profit Margin
SLB N.V., operating profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The operating profit margin exhibits a distinct cyclical pattern over the analyzed period, characterized by an initial multi-quarter expansion followed by a period of stabilization and a subsequent sustained contraction.
- Margin Expansion Phase
- Between March 2022 and March 2024, a consistent upward trend in profitability is observed. The operating profit margin increased from 12.56% to a peak of 16.55%. This growth was supported by operating income rising from US$ 711 million to US$ 1,386 million, outpacing the growth in revenue during the same timeframe.
- Stabilization and Peak
- The margin reached a plateau between March 2024 and September 2024, maintaining levels between 16.31% and 16.55%. During this window, operating income reached its highest point of US$ 1,547 million in September 2024.
- Profitability Contraction
- Starting in December 2024, a persistent downward trend is evident. Despite revenue continuing to increase and reaching a peak of US$ 9,744 million in December 2025, operating income declined significantly. This divergence resulted in the operating profit margin compressing from 15.99% in December 2024 to 11.44% by June 2026, marking the lowest margin level in the reported period.
Net Profit Margin
SLB N.V., net profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Net profit margin = 100
× (Net income attributable to SLBQ2 2026
+ Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The net profit margin exhibited a cyclical trajectory over the observed period, characterized by an initial phase of significant expansion, a period of relative stability, and a subsequent steady contraction.
- Margin Expansion (2022 – Early 2023)
- A strong upward trend is observed from March 31, 2022, to March 31, 2023, as the net profit margin rose from 8.84% to a peak of 12.94%. This growth was driven by a consistent increase in both revenue and net income, indicating a period of enhanced operational efficiency and profitability growth.
- Stability and Plateau (Mid 2023 – 2024)
- Between June 30, 2023, and December 31, 2024, the net profit margin remained relatively stable, fluctuating within a narrow range between 12.29% and 12.97%. During this phase, revenue continued to grow, increasing from approximately $8.1 billion to $9.28 billion, while net income maintained a proportional level, keeping the profit ratio consistent.
- Profitability Compression (2025 – 2026)
- A sustained decline in the net profit margin is evident starting in March 2025, falling from 11.62% to 8.53% by June 30, 2026. This contraction is particularly notable because it occurred while revenue reached its maximum peak of $9.74 billion in December 2025. The divergence between rising revenues and declining net income suggests an increase in operating expenses or other cost pressures that eroded the bottom line.
Return on Equity (ROE)
SLB N.V., ROE calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
ROE = 100
× (Net income attributable to SLBQ2 2026
+ Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025)
÷ Total SLB stockholders’ equity
= 100 × ( + + + )
÷ =
The Return on Equity (ROE) exhibits three distinct phases between March 2022 and June 2026: a period of rapid growth, a phase of stabilization, and a subsequent period of significant decline.
- Growth and Expansion Phase (March 2022 – March 2025)
- A consistent upward trajectory in ROE is observed starting from 13.63% in March 2022, peaking at 21.47% by March 2025. This improvement was driven primarily by a strong increase in net income, which grew from 510 million USD in the first quarter of 2022 to levels consistently exceeding 1 billion USD throughout 2023 and 2024.
- Stabilization Period (June 2023 – December 2024)
- For approximately 19 months, the ROE remained remarkably stable, fluctuating within a narrow band between 20.82% and 21.43%. During this window, net income and stockholders' equity grew in relative proportion to one another, maintaining a consistent rate of return for shareholders.
- Contraction and Dilution Phase (June 2025 – June 2026)
- A sharp reversal in ROE is evident starting in June 2025, with the ratio falling from 20.16% to 11.89% by June 2026. This deterioration is the result of a dual negative impact: a reduction in quarterly net income, which dropped from a peak of 1.186 billion USD in September 2024 to 786 million USD by June 2026, and a substantial increase in total stockholders' equity, which rose from 19.515 billion USD in March 2025 to 26.074 billion USD by June 2026.
The overall trend indicates that while the company successfully optimized its return on equity for several years, the recent expansion of the equity base, coupled with softening net income, has led to a significant dilution of shareholder returns.
Return on Assets (ROA)
SLB N.V., ROA calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
ROA = 100
× (Net income attributable to SLBQ2 2026
+ Net income attributable to SLBQ1 2026
+ Net income attributable to SLBQ4 2025
+ Net income attributable to SLBQ3 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
The analysis of Return on Assets (ROA) reveals a distinct cycle of expansion followed by a period of contraction between March 2022 and June 2026.
- Growth and Acceleration Phase
- A consistent upward trajectory in ROA is observed from March 31, 2022, when the ratio stood at 4.98%, climbing steadily to 7.98% by December 31, 2022. This initial improvement was driven by a rapid increase in quarterly net income, which rose from 510 million to 1,065 million, while total assets grew at a more moderate pace.
- Peak Efficiency and Plateau
- The ROA reached its maximum levels between September 2023 and December 2023, peaking at 9.12%. A period of high-performance stability followed, with the ratio remaining within a narrow range of 8.94% to 9.12% through September 30, 2024. During this phase, net income was maintained consistently above 1 billion per quarter, offsetting the gradual increase in the asset base.
- Decline and Asset Base Expansion
- A downward trend began in early 2025, with ROA falling from 8.55% in March 2025 to 5.58% by June 30, 2026. This decline is the result of two converging factors: a contraction in net income, which dipped to a period low of 739 million in September 2025, and a significant expansion of total assets. Specifically, total assets increased from 48.9 billion in December 2024 to a peak of 55.5 billion by June 2026, creating a denominator effect that substantially reduced the overall return on assets.