Schlumberger Ltd. (NYSE:SLB)

The annual financial data reveals several prominent trends regarding the company’s revenue and net income (loss) attributable to shareholders over the analyzed period.

Revenue Trends

The revenue demonstrates a generally upward trajectory from 2005 through 2014, increasing from approximately 14.3 billion USD in 2005 to a peak of about 48.6 billion USD in 2014. This growth indicates a strong expansion phase during these years. However, this peak is followed by a sharp decline in 2015 and 2016, dropping to 35.5 billion USD and 27.8 billion USD respectively, reflecting a significant contraction likely linked to external industry or economic factors. From 2017 onwards, revenue shows a pattern of gradual recovery and renewed growth, reaching approximately 36.3 billion USD in 2024, suggesting a revitalization of business activities and market conditions toward the end of the period.

Net Income (Loss) Trends

Net income attributable to the company exhibits considerable volatility over the years. Initially, it rises steadily from 2.2 billion USD in 2005 to a peak of roughly 6.7 billion USD in 2013, mirroring the revenue growth and indicating strong profitability. However, starting in 2014, net income sharply declines alongside revenue decreases, culminating in negative net income figures in 2015 and 2016, with losses of approximately 1.7 billion USD and 1.5 billion USD respectively. This period marks a challenging phase with significant financial distress. After 2016, the company returns to profitability with fluctuating but positive net income, recovering to around 4.5 billion USD by 2024. The recovery in net income is somewhat less consistent than revenue, showing periods of both growth and stagnation but ultimately demonstrating improved financial health.

Comparative Insights

The correlation between revenue and net income is strong during growth and contraction periods but diverges somewhat during recovery phases, indicating possible variations in cost management, operating efficiencies, or market conditions affecting profitability. The steep revenue and net income declines around 2015-2016 highlight a critical downturn phase, potentially driven by external shocks such as market disruptions or industry-wide crises. Subsequent improvement suggests effective strategic adjustments and resilience in core business operations.

Current Assets

Current assets demonstrated a general upward trend from 2005 to 2011, increasing from approximately 8,554 million USD to a peak of around 24,156 million USD in 2012. Following this peak, there was notable volatility with a decline to roughly 15,731 million USD by 2013 and further down to about 12,919 million USD in 2015. After 2015, current assets fluctuated but generally recovered to reach approximately 18,570 million USD in 2024, indicating a moderate recovery phase in recent years.

Total Assets

Total assets grew significantly from 18,077 million USD in 2005 to a peak of about 77,956 million USD in 2016. This growth period, particularly between 2009 and 2016, marks substantial expansion in the company’s asset base. After 2016, total assets experienced a downward trend that led to a reduction to around 41,511 million USD by 2021. From 2021 onward, total assets displayed a slight recovery trend, increasing modestly to approximately 48,935 million USD by 2024.

Summary

The company’s current assets grew steadily in the early years, reaching a peak around 2012, followed by a volatile decline and partial recovery. Total assets showed robust growth up to 2016 before a considerable contraction over the next few years and a partial rebound more recently. The trends indicate a period of significant asset accumulation followed by consolidation or divestment, with recent years reflecting stabilization efforts. The fluctuations in both current and total assets suggest adaptive management of resources likely driven by external market conditions or strategic repositioning.

Current liabilities

The current liabilities exhibited an overall increasing trend from 2005 to 2015, rising from 5,515 million US dollars in 2005 to a peak of 15,282 million US dollars in 2013, with some fluctuations. From 2014 onwards, a general decline is observed, reaching 10,359 million US dollars in 2021, before rising again moderately to 13,395 million in 2023 and slightly decreasing to 12,811 million in 2024. This fluctuation may reflect variations in short-term obligations and working capital management.

Total liabilities

Total liabilities demonstrated a consistent upward movement from 9,981 million US dollars in 2005 to a high of 36,427 million in 2016. After 2016, liabilities decreased gradually, falling to 25,146 million in 2022. A slight increase was noticed in 2023 to 26,598 million, stabilizing around the same level in 2024 at 26,585 million. This pattern suggests a significant build-up of total obligations through 2016 followed by deleveraging or improved liabilities management.

Short-term borrowings and long-term debt

Borrowings and debts rose steadily from 4,388 million in 2005 to reach a peak of 19,616 million in 2016. Following this peak, a decline ensued until 2022, where the figure dropped to 12,226 million. The years 2023 and 2024 show a nearly stable debt level of approximately 12,000 million. This trend reflects a notable accumulation of debt until 2016 and subsequent efforts to reduce or restructure debt.

Total stockholders’ equity

Stockholders’ equity increased significantly from 7,592 million in 2005 to a peak above 41,000 million in 2016, indicating strong equity growth over this period. However, sharp declines are observed starting in 2017, dropping steeply to 12,071 million by 2020. A recovery phase follows, with equity rising steadily to 21,130 million by 2024. This pattern may reflect volatility in retained earnings, asset revaluations, or other comprehensive income components.

Summary of trends

The data reveal a phase of growth in both liabilities and equity up to approximately 2016, indicating expansion and increased financing activities. Post-2016, the company experienced a deleveraging trend paired with decreased equity, reaching a low point around 2020. The subsequent recovery in equity and stabilization of liabilities through 2024 suggests efforts to strengthen the balance sheet and financial position after a period of stress or restructuring.

Net Cash Provided by Operating Activities

The net cash flow from operating activities shows a generally positive trend with notable fluctuations. Starting at 3,004 million USD in 2005, it increased steadily to a peak of 11,195 million USD in 2014. Following this peak, a gradual decline occurred, reaching a low of 2,944 million USD in 2020. The years after 2020 displayed a recovery trend, with values rising back above 6,000 million USD by 2023 and slightly decreasing to 6,602 million USD in 2024. This pattern indicates variability in operational cash generation, with strong performance prior to 2015, a significant dip during the early 2020s, and a subsequent improvement.

Net Cash Used in Investing Activities

Cash flows related to investing activities are consistently negative throughout the observed period, reflecting ongoing investments or asset acquisitions. The outflow started at -2,044 million USD in 2005, increased to significant outflows in the four-digit millions range through 2011 and 2012, with some extreme outflows such as -10,252 million USD in 2015. Thereafter, the outflows reduced considerably but remained substantial, fluctuating between approximately -600 million USD and -3,100 million USD through the later years up to 2024. This persistent negative investing cash flow suggests steady capital expenditure or acquisitions throughout the period.

Net Cash Provided by (Used in) Financing Activities

Financing cash flows show a more volatile pattern, with shifts between inflows and outflows. Initial years saw negative cash flows from financing activities, such as -994 million USD in 2005, a small positive inflow in 2006 at 291 million USD, followed by large negative outflows extending to -5,896 million USD in 2014. Interestingly, 2015 marked a positive cash flow at 1,374 million USD, after which the financing cash flows reverted to consistently negative values, fluctuating between approximately -500 million and -5,000 million USD. From 2018 onwards, the financing cash flows indicate a persistent outflow, with amounts generally near or below -2,500 million USD. This pattern may reflect repurchases, debt repayments, or dividend payments exceeding new financing during recent years.

Basic Earnings Per Share (EPS)

Between 2005 and 2008, there was a consistent upward trend in basic EPS, rising from 1.88 US$ to 4.54 US$. However, in 2009, a sharp decline occurred, reducing EPS to 2.62 US$, followed by a recovery period up to 2013 where it peaked at 5.09 US$. A notable downturn happened starting in 2014, with earnings turning negative in 2016 and 2017 (approximately -1.24 and -1.08 US$ respectively). After a brief recovery in 2018, the EPS experienced a significant drop in 2019 and 2020, with negative values of -7.32 and -7.57 US$. From 2021 onward, the EPS returned to positive territory and demonstrated gradual improvement through 2024, ending at 3.14 US$. Overall, the trend illustrates volatility with periods of both growth and decline, including two major troughs in the mid-2010s and early 2020s.

Diluted Earnings Per Share (EPS)

The diluted EPS closely mirrors the pattern observed in basic EPS throughout the period. Initial growth from 1.82 US$ in 2005 to a peak of 4.45 US$ in 2008 was followed by a decline in 2009. Recovery was seen until 2013, reaching 5.05 US$, then followed by a decline into negative territory during 2016 and 2017. The dip in 2019 and 2020 was also marked by substantial negative diluted EPS. Improvement began from 2021 onwards with a steady positive trajectory towards 3.11 US$ by 2024. The consistency between basic and diluted EPS trends indicates stable share dilution effects over the years.

Dividend Per Share

Dividends per share generally increased from 0.42 US$ in 2005 to a peak of 2 US$ between 2013 and 2017, indicating a period of steady and growing returns to shareholders. Despite declining EPS over the same timeframe, dividends were maintained at a high level before experiencing a sharp decline in 2020 to 0.88 US$, and further dropping to 0.5 US$ in 2021. Thereafter, dividends showed recovery, increasing to 1.1 US$ by 2024. This pattern suggests a conservative response to earnings volatility, with dividend cuts aligning with periods of financial stress and losses, particularly in 2020 and 2021, followed by cautious restoration.