Schlumberger Ltd. (NYSE:SLB)

The analysis of the financial data reveals several trends regarding goodwill and intangible assets over the five-year period.

Goodwill

Goodwill shows a moderate increasing trend, rising slightly from 12,980 million USD in 2020 to 14,593 million USD in 2024. The growth is gradual and consistent, with a notable increase between 2022 and 2023.

Customer relationships

Customer relationships exhibit a slight decline from 1,744 million USD in 2020 to 1,680 million USD in 2022, followed by a recovery to 1,887 million USD in 2023 and stability into 2024. This suggests modest fluctuations but an overall rebound in this asset category.

Technology/technical know-how

Technology/technical know-how has a steady upward trajectory, moving from 1,284 million USD in 2020 to 1,588 million USD in 2024. The increase is especially pronounced after 2022, indicating possible investments or acquisitions in technology assets.

Trade names

Trade names remain largely stable over the period, with values oscillating very slightly around 767 million USD and ending at 795 million USD in 2024. This indicates minimal reassessment or change in this intangible asset.

Other intangible assets

The "Other" category of intangible assets shows a gradual increase from 1,488 million USD in 2020 to 1,604 million USD in 2024, with a small dip observed in 2023. The trend indicates steady growth overall.

Intangible assets, gross book value

The gross book value of intangible assets reflects a consistent upward trend, increasing from 5,283 million USD in 2020 to 5,874 million USD in 2024. This suggests continuous investments or acquisitions enhancing the intangible asset base.

Accumulated amortization

Accumulated amortization increases steadily in magnitude, from -1,828 million USD in 2020 to -2,862 million USD in 2024. This reflects systematic amortization of intangible assets over time, which slightly reduces the net book value.

Intangible assets, net book value

The net book value of intangible assets shows a downward trend from 3,455 million USD in 2020 to 2,992 million USD in 2022, followed by a recovery in 2023 to 3,239 million USD and a decline again to 3,012 million USD in 2024. The fluctuation indicates impacts from amortization exceeding additions in certain years but somewhat offset by new intangibles in others.

Goodwill and intangible assets (combined)

The combined value of goodwill and intangible assets decreases from 16,435 million USD in 2020 to 15,974 million USD in 2022, and then rises to 17,605 million USD by 2024. This pattern reflects the interplay of goodwill's steady growth and the volatile net intangible assets over the period.

Over the period from December 31, 2020, to December 31, 2024, total assets reported exhibited a moderate upward trend. Starting at 42,434 million US dollars in 2020, assets slightly decreased in 2021 to 41,511 million but then increased steadily each year to reach 48,935 million by 2024. Adjusted total assets, which presumably exclude goodwill or other adjustments, followed a similar pattern but on a smaller scale, beginning at 29,454 million in 2020, decreasing to 28,521 million in 2021, and rising annually to 34,342 million by the end of 2024.

Stockholders’ equity under the reported figures showed a consistent increase over the same period. Beginning at 12,071 million US dollars in 2020, reported equity rose each year, reaching 21,130 million by 2024. The adjusted stockholders’ equity, however, presented a contrasting trajectory initially, showing a negative value of -909 million in 2020. It improved substantially over time, shifting to positive territory by 2021 at 2,014 million and continuing an upward trend to 6,537 million by the end of 2024. This improvement suggests a significant reduction or reevaluation of goodwill or intangible assets affecting the equity base.

Net income attributable to the company displayed marked improvements. The reported net income began with a considerable loss of -10,518 million in 2020 but rebounded strongly to a positive 1,881 million in 2021. This upward trend continued with increasing net incomes of 3,441 million in 2022, 4,203 million in 2023, and 4,461 million in 2024. Adjusted net income mirrored this trend but started with a smaller loss in 2020 of -7,448 million, followed by the same positive figures from 2021 onward, indicating that the adjustments primarily impacted the initial year’s results.

Overall, the data indicate a company recovering from a significant loss in 2020, with steady improvements in asset base, equity position, and profitability over the following four years. The adjusted figures reveal how excluding certain assets or liabilities (such as goodwill) affects the financial presentation, improving equity and net income figures in the earlier period and suggesting more conservative or reality-reflecting valuations in the adjusted data set. This positive trajectory in adjusted and reported figures implies strengthening financial health and profitability.

The analysis of the financial data over the five-year period reveals notable trends in profitability, asset efficiency, leverage, and returns, both on a reported basis and adjusted for goodwill.

Net Profit Margin

Reported net profit margin showed a significant recovery from a negative margin of -44.57% in 2020 to positive margins exceeding 12% from 2022 onward, with slight fluctuations but relative stability around 12.3% through 2024. The adjusted net profit margin followed a similar trajectory, improving from -31.56% in 2020 to approximately 12.3% by 2024, indicating improvements in core profitability after adjusting for goodwill.

Total Asset Turnover

Reported total asset turnover showed a gradual improvement from 0.56 in 2020 to 0.74 in 2024, suggesting enhanced efficiency in utilizing assets to generate revenue. The adjusted total asset turnover displayed a higher magnitude throughout, starting at 0.8 in 2020 and rising to 1.06 by 2024, indicating even stronger asset utilization when considering adjustments, likely reflecting a more efficient operational base excluding the effects of goodwill.

Financial Leverage

Reported financial leverage steadily declined from 3.52 in 2020 to 2.32 in 2024, suggesting a gradual reduction in the degree of debt financing or reliance on liabilities for asset funding. In contrast, the adjusted financial leverage exhibited a much higher level initially at 14.16 in 2021 (data for 2020 not available) and then a consistent decrease to 5.25 by 2024, implying a significant deleveraging trend on an adjusted basis that may reflect changes in the balance sheet composition once goodwill is excluded.

Return on Equity (ROE)

Reported ROE demonstrated a sharp turnaround from a deeply negative -87.13% in 2020 to increasingly positive values, reaching slightly over 21% by 2024. Adjusted ROE presented substantially greater magnitudes, peaking at 93.4% in 2021 and gradually decreasing but remaining high at about 68.2% by 2024. This pattern indicates strong profitability on shareholders' equity after adjustments, with some normalization over time but still reflecting robust returns.

Return on Assets (ROA)

Reported ROA improved from a negative -24.79% in 2020 to positive levels above 9% by 2024, illustrating better asset profitability. Adjusted ROA followed the same upward trend, from -25.29% in 2020 to nearly 13% by 2024, further suggesting that operational efficiency and asset profitability improved significantly when excluding goodwill effects.

Overall, the data portrays a consistent improvement across key financial performance indicators from 2020 to 2024. Profitability margins turned positive and stabilized, asset turnover increased indicating greater operational efficiency, and leverage decreased suggesting stronger balance sheet health. The adjusted figures, which remove the impact of goodwill, magnify these positive trends, especially in leverage and return ratios, highlighting underlying operational strength and financial performance improvements over the period analyzed.

The financial data reflects the company's performance over a five-year period from 2020 to 2024, with a focus on reported and adjusted net income attributable to the entity, alongside corresponding net profit margins.

Net Income Trends

In 2020, the company experienced a significant net loss, with the reported net income reaching -$10,518 million and the adjusted net income at -$7,448 million. From 2021 onwards, the net income showed a marked recovery, turning positive with reported and adjusted net incomes both at $1,881 million. This upward trajectory continued consistently through 2024, reaching $4,461 million in both reported and adjusted figures.

Profit Margin Analysis

Reflecting the net income trend, reported net profit margin was deeply negative in 2020 at -44.57%, indicating substantial operational challenges or extraordinary items impacting profitability. The adjusted net profit margin, which presumably excludes goodwill impairments or other non-recurring items, was similarly negative at -31.56%, though less severe. From 2021 forward, both reported and adjusted net profit margins aligned closely and demonstrated continuous improvement, reaching a peak of 12.68% in 2023 before marginally declining to 12.29% in 2024.

Comparison Between Reported and Adjusted Figures

The adjustments appear to have a significant impact in 2020, suggesting that goodwill impairments or other adjustments considerably affected reported results that year. After 2020, the reported and adjusted net income and margin figures converge, indicating stabilization in the company’s operations and fewer significant non-recurring adjustments impacting profitability.

Overall, the data exhibits a strong recovery and improving profitability from the severely negative results observed in 2020. The stability and growth in net income and profit margins in the subsequent years reflect enhanced operational efficiency or favorable market conditions, with consistent performance in both reported and adjusted metrics suggesting a maturing financial profile.

The data reveals clear trends in both the reported and adjusted financial metrics of the company over the five-year period.

Total Assets

The reported total assets exhibit a fluctuating but overall increasing pattern, starting at 42,434 million US dollars in 2020, dipping slightly in 2021 to 41,511 million, then rising steadily to 48,935 million by 2024. Adjusted total assets, which presumably exclude goodwill or intangible assets, follow a similar trajectory though with consistently lower values. These adjusted figures decline from 29,454 million in 2020 to 28,521 million in 2021, then gradually increase each year up to 34,342 million in 2024.

Total Asset Turnover

The reported total asset turnover ratio shows a steady upward trend from 0.56 in 2020 to 0.74 in 2024. This indicates an improvement in the company’s efficiency at generating revenue relative to its total assets. The adjusted total asset turnover ratio starts higher than the reported figure, at 0.8 in 2020, and exhibits a similar positive trend, rising to 1.06 by 2024. This suggests that when excluding goodwill or intangible assets, the company’s asset utilization is significantly stronger and continues to improve over time.

Overall, the company has increased its asset base in both reported and adjusted terms, with a stronger growth rate noted post-2021. Concurrently, enhancements in asset turnover ratios imply improved operational efficiency and revenue generation relative to the asset base. The consistently higher adjusted turnover ratio compared to the reported ratio highlights the impact of goodwill adjustment on asset efficiency assessment.

The analysis of the financial data over the five-year period reveals several significant trends in the company's asset base, equity position, and leverage ratios, both reported and adjusted for goodwill.

Total Assets

Reported total assets showed a slight decline from 2020 to 2021, decreasing from $42,434 million to $41,511 million. Thereafter, assets increased steadily, reaching $48,935 million by the end of 2024. Adjusted total assets followed a similar pattern, decreasing modestly from $29,454 million in 2020 to $28,521 million in 2021, then rising continuously to $34,342 million by 2024. The gap between reported and adjusted assets suggests the impact of goodwill and other adjustments remains considerable but relatively stable over the years.

Stockholders’ Equity

Stockholders’ equity on a reported basis increased consistently year over year, growing from $12,071 million in 2020 to $21,130 million in 2024. This indicates a strengthening equity base and potential accumulation of retained earnings or capital injections. Conversely, adjusted equity figures start in negative territory (-$909 million in 2020), reflecting significant goodwill write-downs or adjustments initially. However, there is marked improvement, with adjusted equity turning positive in 2021 ($2,014 million) and increasing steadily to $6,537 million by 2024. This progression implies successful impairment recoveries or recalibrations in asset valuations contributing to an improved net asset position after adjustment.

Financial Leverage

The reported financial leverage ratio steadily declined from 3.52 in 2020 to 2.32 in 2024, indicating a reduction in relative debt levels or improved equity cushioning over the period, which generally signals a strengthening balance sheet and reduced financial risk. The adjusted financial leverage ratio exhibits higher values, starting at 14.16 in 2021 (with no data for 2020), and declining substantially to 5.25 by 2024. Despite higher adjusted leverage metrics compared to reported figures, the downward trend suggests deleveraging after adjusting for goodwill, revealing improved solvency and financial stability when intangible asset adjustments are considered.

Overall, the company demonstrates a pattern of asset growth and increasing equity, alongside consistent deleveraging. The adjusted data highlights the material influence of goodwill and related adjustments on the balance sheet and leverage, with significant improvements detected post-2020. These trends collectively suggest a strengthening financial position and improved risk profile over the analyzed timeframe.

The data reveals distinct trends in Schlumberger Ltd.'s financial performance and equity position over the reported periods from 2020 to 2024, with a particular focus on both reported and goodwill-adjusted figures.

Net Income (Loss) Attributable to SLB

The reported net income displayed a significant negative value in 2020, at -10,518 million USD, indicating a substantial loss. However, a recovery is evident starting 2021, with positive net income increasing steadily to 1,881 million USD, 3,441 million USD in 2022, 4,203 million USD in 2023, and reaching 4,461 million USD in 2024. The adjusted net income follows a similar trajectory but starts from a less negative base in 2020 (-7,448 million USD), suggesting that adjustments, possibly for goodwill impairments or other non-recurring items, reduced the extent of the loss reported initially. Both measures show consistent improvement over the years, reflecting restoration and growth in profitability.

Total Stockholders’ Equity

Reported total stockholders’ equity increased continuously from 12,071 million USD in 2020 to 21,130 million USD in 2024. This steady upward trend suggests ongoing accumulation of equity through retained earnings or capital inflows. On the other hand, the adjusted equity figures start from a negative value in 2020 (-909 million USD), likely reflecting the removal of goodwill or other intangible assets that may have been impaired or adjusted downward. Adjusted equity shows a strong positive rise in subsequent years, increasing to 2,014 million USD in 2021 and reaching 6,537 million USD by 2024, indicating improving underlying net asset value after adjustment.

Return on Equity (ROE)

The reported ROE correlates with the income recovery and equity growth, moving from a negative return of -87.13% in 2020 to positive double-digit returns in subsequent years — 12.54% in 2021, then growing significantly to 21.11% by 2024. This shift reflects the transition from loss to profitability and more efficient use of shareholder equity.

The adjusted ROE, which excludes goodwill and other adjustments, shows markedly higher values starting in 2021, with a peak of 93.4% that year, declining gradually afterward to 68.24% in 2024. The high adjusted ROE values suggest that when accounting for goodwill adjustments, the company’s ability to generate returns on actual equity invested is substantially stronger than the reported figures may imply. The gradual decline in adjusted ROE from 2021 onward may signify normalization or stabilization following an initial rebound period.

In summary, the financial data indicates a robust recovery in both profitability and equity base after a challenging 2020. The adjustments, primarily related to goodwill, have a material impact on the equity and return measurements, revealing enhanced underlying financial performance. The company’s improving trends in net income, equity, and ROE, both reported and adjusted, underscore a strengthening financial position and greater efficiency in the use of equity capital over the analyzed periods.

The financial data reveals notable trends in profitability, asset base, and return on assets for the periods analyzed.

Net Income

Reported net income attributable to the company shows a significant recovery over the five-year horizon, starting from a substantial loss of approximately -$10.5 billion in 2020 to a positive income of about $4.5 billion in 2024. Adjusted net income, which likely excludes goodwill-related effects, displays a similar trajectory with a less severe loss in 2020 (-$7.4 billion) and identical positive figures from 2021 onwards. This pattern indicates that the company has successfully transitioned from a considerable loss position to sustained profitability.

Total Assets

The reported total assets remain relatively stable between 2020 and 2022, around the $41-43 billion range, before increasing to approximately $48.9 billion in 2024. Adjusted total assets follow a similar, albeit lower, trend, increasing from about $29.5 billion in 2020 to $34.3 billion in 2024. The difference between reported and adjusted assets suggests a significant portion attributed to goodwill or intangible assets, which remains relatively consistent over the years.

Return on Assets (ROA)

The reported ROA demonstrates a substantial improvement from a negative return of -24.79% in 2020 to a positive and growing return of 9.12% in 2024. Adjusted ROA, which excludes goodwill impact, shows an even more pronounced improvement, rising from -25.29% in 2020 to nearly 13% in 2024. The adjusted figures indicate a stronger profitability relative to actual operating assets, suggesting enhanced operational efficiency or asset utilization after excluding non-core asset effects.

Overall, the data illustrates a company that has reversed a difficult loss-making situation in 2020 towards progressive and solid profitability through 2024, supported by modest asset growth and improved returns on asset base. The adjustments for goodwill affect asset base and profitability ratios but do not alter the positive direction of performance improvement.