Common-Size Income Statement
SLB N.V., common-size consolidated income statement
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reflects several notable trends in various aspects of the company's performance over the observed periods.
- Revenue Composition
- The proportion of revenue derived from services has generally declined from 70.05% in 2020 to 64.2% in 2024. Conversely, product sales as a percentage of revenue have increased steadily from 29.95% to 35.8%, indicating a shift in revenue mix towards product sales.
- Cost Structure
- The cost of services as a percentage of revenue has decreased consistently from -62.18% in 2020 to -49.18% in 2024, suggesting improved efficiency or cost control in service delivery. In contrast, the cost of sales has trended upward slightly, from -26.8% to -30.26%, reflecting increased cost pressures in product sales. Overall, the total cost of revenue has improved, decreasing from -88.98% to -79.44% over the period.
- Profitability
- Gross margin as a percentage of revenue has shown strong improvement, rising from 11.02% in 2020 to 20.56% in 2024. This indicates enhanced profitability at the gross level, attributable likely to the combined effect of cost management and revenue mix changes.
- Operating Expenses
- Research and engineering expenses as a percentage of revenue have decreased marginally from -2.46% to -2.06%, and general and administrative expenses have declined from -1.55% to -1.06% across the years, suggesting effective expense control. New entries including restructuring and merger-related costs have emerged in the later years, contributing small additional expense components.
- One-Time and Other Income/Expenses
- There were significant impairments recognized in 2020 (-53.63%), with no corresponding impairments in subsequent years. Gains on various asset sales and equity investments have appeared sporadically, contributing positively to income. Interest income has increased slightly, while interest expense has decreased steadily from -2.39% to -1.41% of revenue, aiding net profitability.
- Income and Earnings
- Operating income has turned from a substantial loss of -46.62% in 2020 to positive values exceeding 15% from 2021 onward, indicating a significant turnaround in operational performance. Income before taxes follows a similar improvement pattern. Tax expenses have become negative, reflecting tax payments increasing relative to income as profitability improved. Net income attributable to the company has moved from a large loss (-44.57%) in 2020 to consistent positive margins around 12-13% in later years, demonstrating restored and sustained profitability.
- Minority Interests
- Net income attributable to noncontrolling interests remains a small negative percentage, fluctuating slightly but generally increasing in absolute terms, which may indicate a higher share of earnings attributable to minority shareholders in recent years.
Overall, the data exhibits a clear trend of operational recovery and improved profitability. The company has effectively controlled service costs and operating expenses while increasingly deriving revenue from higher-margin product sales. The elimination of significant impairment losses after 2020 and the presence of occasional gains from asset sales and investments have further supported earnings. Interest costs have declined, bolstering net income. Sustained positive net income levels reflect successful financial management and operational execution over the review period.