Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Schlumberger Ltd. (NYSE:SLB)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Goodwill and Intangible Assets

Advanced level

Goodwill and Intangible Asset Disclosure

Schlumberger Ltd., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Customer relationships 3,779  4,768  4,832  4,938  2,489 
Technology/technical know-how 2,498  3,494  3,634  3,655  1,864 
Tradenames 1,885  2,799  2,806  2,847  1,625 
Other 1,514  1,404  1,295  1,122  513 
Intangible assets, gross book value 9,676  12,465  12,567  12,562  6,491 
Accumulated amortization (2,587) (3,738) (3,213) (2,707) (1,922)
Intangible assets, net book value 7,089  8,727  9,354  9,855  4,569 
Goodwill 16,042  24,931  25,118  24,990  15,605 
Intangible assets and goodwill 23,131  33,658  34,472  34,845  20,174 

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

Item Description The company
Intangible assets, net book value Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Schlumberger Ltd.’s intangible assets, net book value decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Schlumberger Ltd.’s goodwill decreased from 2017 to 2018 and from 2018 to 2019.
Intangible assets and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Schlumberger Ltd.’s intangible assets and goodwill decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

Schlumberger Ltd., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 56,312  70,507  71,987  77,956  68,005 
Less: Goodwill 16,042  24,931  25,118  24,990  15,605 
Total assets (adjusted) 40,270  45,576  46,869  52,966  52,400 
Adjustment to Total Schlumberger Stockholders’ Equity
Total Schlumberger stockholders’ equity (as reported) 23,760  36,162  36,842  41,078  35,633 
Less: Goodwill 16,042  24,931  25,118  24,990  15,605 
Total Schlumberger stockholders’ equity (adjusted) 7,718  11,231  11,724  16,088  20,028 
Adjustment to Net Income (loss) Attributable To Schlumberger
Net income (loss) attributable to Schlumberger (as reported) (10,137) 2,138  (1,505) (1,687) 2,072 
Add: Goodwill impairment 8,828  —  —  —  — 
Net income (loss) attributable to Schlumberger (adjusted) (1,309) 2,138  (1,505) (1,687) 2,072 

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).


Schlumberger Ltd., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Schlumberger Ltd., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin -30.80% 6.52% -4.94% -6.07% 5.84%
Adjusted net profit margin -3.98% 6.52% -4.94% -6.07% 5.84%
Total Asset Turnover
Reported total asset turnover 0.58 0.47 0.42 0.36 0.52
Adjusted total asset turnover 0.82 0.72 0.65 0.53 0.68
Financial Leverage
Reported financial leverage 2.37 1.95 1.95 1.90 1.91
Adjusted financial leverage 5.22 4.06 4.00 3.29 2.62
Return on Equity (ROE)
Reported ROE -42.66% 5.91% -4.09% -4.11% 5.81%
Adjusted ROE -16.96% 19.04% -12.84% -10.49% 10.35%
Return on Assets (ROA)
Reported ROA -18.00% 3.03% -2.09% -2.16% 3.05%
Adjusted ROA -3.25% 4.69% -3.21% -3.19% 3.95%

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Schlumberger Ltd.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Schlumberger Ltd.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Schlumberger Ltd.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Schlumberger Ltd.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Schlumberger Ltd.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Schlumberger Ltd., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Schlumberger (10,137) 2,138  (1,505) (1,687) 2,072 
Revenue 32,917  32,815  30,440  27,810  35,475 
Profitability Ratio
Net profit margin1 -30.80% 6.52% -4.94% -6.07% 5.84%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Schlumberger (1,309) 2,138  (1,505) (1,687) 2,072 
Revenue 32,917  32,815  30,440  27,810  35,475 
Profitability Ratio
Adjusted net profit margin2 -3.98% 6.52% -4.94% -6.07% 5.84%

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Schlumberger ÷ Revenue
= 100 × -10,137 ÷ 32,917 = -30.80%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Schlumberger ÷ Revenue
= 100 × -1,309 ÷ 32,917 = -3.98%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Schlumberger Ltd.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenue 32,917  32,815  30,440  27,810  35,475 
Total assets 56,312  70,507  71,987  77,956  68,005 
Activity Ratio
Total asset turnover1 0.58 0.47 0.42 0.36 0.52
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 32,917  32,815  30,440  27,810  35,475 
Adjusted total assets 40,270  45,576  46,869  52,966  52,400 
Activity Ratio
Adjusted total asset turnover2 0.82 0.72 0.65 0.53 0.68

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

2019 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 32,917 ÷ 56,312 = 0.58

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 32,917 ÷ 40,270 = 0.82

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Schlumberger Ltd.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 56,312  70,507  71,987  77,956  68,005 
Total Schlumberger stockholders’ equity 23,760  36,162  36,842  41,078  35,633 
Solvency Ratio
Financial leverage1 2.37 1.95 1.95 1.90 1.91
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 40,270  45,576  46,869  52,966  52,400 
Adjusted total Schlumberger stockholders’ equity 7,718  11,231  11,724  16,088  20,028 
Solvency Ratio
Adjusted financial leverage2 5.22 4.06 4.00 3.29 2.62

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Schlumberger stockholders’ equity
= 56,312 ÷ 23,760 = 2.37

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Schlumberger stockholders’ equity
= 40,270 ÷ 7,718 = 5.22

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Schlumberger Ltd.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Schlumberger (10,137) 2,138  (1,505) (1,687) 2,072 
Total Schlumberger stockholders’ equity 23,760  36,162  36,842  41,078  35,633 
Profitability Ratio
ROE1 -42.66% 5.91% -4.09% -4.11% 5.81%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Schlumberger (1,309) 2,138  (1,505) (1,687) 2,072 
Adjusted total Schlumberger stockholders’ equity 7,718  11,231  11,724  16,088  20,028 
Profitability Ratio
Adjusted ROE2 -16.96% 19.04% -12.84% -10.49% 10.35%

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

2019 Calculations

1 ROE = 100 × Net income (loss) attributable to Schlumberger ÷ Total Schlumberger stockholders’ equity
= 100 × -10,137 ÷ 23,760 = -42.66%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Schlumberger ÷ Adjusted total Schlumberger stockholders’ equity
= 100 × -1,309 ÷ 7,718 = -16.96%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Schlumberger Ltd.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Schlumberger (10,137) 2,138  (1,505) (1,687) 2,072 
Total assets 56,312  70,507  71,987  77,956  68,005 
Profitability Ratio
ROA1 -18.00% 3.03% -2.09% -2.16% 3.05%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Schlumberger (1,309) 2,138  (1,505) (1,687) 2,072 
Adjusted total assets 40,270  45,576  46,869  52,966  52,400 
Profitability Ratio
Adjusted ROA2 -3.25% 4.69% -3.21% -3.19% 3.95%

Based on: 10-K (filing date: 2020-01-22), 10-K (filing date: 2019-01-23), 10-K (filing date: 2018-01-24), 10-K (filing date: 2017-01-25), 10-K (filing date: 2016-01-27).

2019 Calculations

1 ROA = 100 × Net income (loss) attributable to Schlumberger ÷ Total assets
= 100 × -10,137 ÷ 56,312 = -18.00%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Schlumberger ÷ Adjusted total assets
= 100 × -1,309 ÷ 40,270 = -3.25%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Schlumberger Ltd.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.