SLB N.V. (NYSE:SLB)

The financial metrics presented demonstrate varied trends between 2021 and 2025. Generally, asset utilization and profitability ratios exhibit initial improvements followed by stabilization or slight declines towards the end of the period. Leverage ratios consistently decrease, indicating a strengthening financial position. The differences between reported and adjusted figures suggest the presence of non-recurring items or accounting adjustments impacting the initially reported results.

Asset Turnover

Both the reported and adjusted total asset turnover ratios increased from 0.55 in 2021 to 0.74 in 2024, suggesting improved efficiency in utilizing assets to generate revenue. However, a slight decrease to 0.65 is observed in 2025, potentially indicating a leveling off of operational efficiency. The reported and adjusted values remain consistently aligned.

Liquidity

The reported and adjusted current ratios both show a positive trend from 2021 to 2024, increasing from 1.22 and 1.25 respectively, to 1.45 and 1.47. This indicates improving short-term liquidity. A minor decrease is noted in 2025, with both ratios settling at 1.33 and 1.35. The adjusted current ratio consistently remains slightly higher than the reported ratio.

Leverage

A consistent downward trend is observed in both the reported and adjusted debt to equity and debt to capital ratios throughout the period. The debt to equity ratio decreased from 0.95 in 2021 to 0.45 in 2025, while the debt to capital ratio decreased from 0.49 to 0.31. This suggests a reduction in financial risk and increased reliance on equity financing. The adjusted figures are marginally lower than the reported figures. Similarly, financial leverage decreased from 2.77 to 2.10, further reinforcing the trend of decreasing financial risk.

Profitability

The reported net profit margin initially increased significantly from 8.20% in 2021 to 12.25% in 2022, then stabilized around 12% before decreasing to 9.45% in 2025. In contrast, the adjusted net profit margin shows a substantial initial value of 14.08% in 2021, followed by a decline to 9.51% in 2025. The difference between reported and adjusted net profit margin is most pronounced in 2021 and 2022, suggesting significant adjustments were made to reported earnings in those years. Both reported and adjusted return on equity (ROE) peaked in 2023 at 20.82% and 17.86% respectively, before declining to 12.92% and 12.01% in 2025. Return on assets (ROA) followed a similar pattern, increasing to 8.76% and 8.08% in 2023 before decreasing to 6.15% in 2025 for both reported and adjusted values.

In summary, the company demonstrated improving efficiency and liquidity between 2021 and 2024, coupled with a decreasing reliance on debt financing. Profitability metrics peaked in 2023 before experiencing a decline in 2025. The consistent differences between reported and adjusted figures highlight the impact of certain accounting adjustments on the overall financial picture.

The period between December 31, 2021, and December 31, 2025, demonstrates a generally increasing trend in revenue, with a slight decrease observed in the final year. Total assets, both reported and adjusted, also exhibit an overall upward trajectory throughout the period, with a more pronounced increase in the later years. The adjusted total asset turnover ratio mirrors this pattern, initially increasing and then declining.

Revenue Trend

Revenue increased from US$22,929 million in 2021 to US$33,135 million in 2023, representing substantial growth. This growth continued to US$36,289 million in 2024 before experiencing a modest decrease to US$35,708 million in 2025. The 2024 peak suggests a period of strong sales performance, followed by a slight contraction in the most recent year.

Asset Trend

Total assets, both reported and adjusted, increased consistently from 2021 to 2025. Reported total assets grew from US$41,511 million to US$48,935 million by 2024, and then to US$54,868 million in 2025. Adjusted total assets followed a similar pattern, increasing from US$41,830 million to US$55,203 million over the same period. The acceleration in asset growth in 2025 suggests increased investment or acquisitions.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio remained constant at 0.55 between 2021 and 2022. It then increased steadily to 0.65 in 2022, 0.69 in 2023, and peaked at 0.74 in 2024. This indicates improving efficiency in asset utilization during those years. However, the ratio decreased to 0.65 in 2025, coinciding with the slight decline in revenue and the larger increase in adjusted total assets. This suggests a potential decrease in the efficiency of asset utilization in the latest period.

The correlation between revenue and adjusted total asset turnover suggests that the company’s ability to generate revenue from its assets is sensitive to changes in both sales volume and asset base. The decrease in the turnover ratio in 2025, despite relatively stable revenue, warrants further investigation to determine the underlying causes, such as changes in asset composition or operational inefficiencies.

The adjusted current ratio exhibits an overall positive trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. This indicates a generally improving ability to cover short-term liabilities with short-term assets when considering adjustments made to the asset base. The adjusted current ratio consistently remains above the reported current ratio throughout the period, suggesting that the adjustments to current assets positively impact the liquidity position.

Adjusted Current Ratio Trend

The adjusted current ratio increased from 1.25 in 2021 to 1.47 in 2024, representing a 17.6% improvement over the four-year period. This growth suggests strengthening short-term liquidity. However, the ratio decreased to 1.35 in 2025, representing a 8.2% decline from the 2024 peak. This recent decrease warrants further investigation to determine its underlying causes.

Comparison to Reported Current Ratio

The adjusted current ratio consistently exceeds the reported current ratio across all years. The difference between the two ratios ranges from 0.03 to 0.13, indicating that the adjustments to current assets contribute to a more favorable liquidity assessment. This suggests that certain current asset classifications may be conservative in the standard reporting, and the adjustments provide a more comprehensive view of available liquid resources.

Underlying Asset and Liability Movements

Both adjusted current assets and current liabilities increased over the period. Adjusted current assets grew from US$12,973 million in 2021 to US$19,848 million in 2025, a 53.0% increase. Current liabilities also increased, from US$10,359 million in 2021 to US$14,721 million in 2025, a 42.3% increase. The faster growth in adjusted current assets relative to current liabilities contributed to the initial improvement in the adjusted current ratio. The decrease in the ratio in 2025 is attributable to a larger percentage increase in current liabilities compared to adjusted current assets.

In summary, the adjusted current ratio demonstrates a generally positive trend in short-term liquidity, although the most recent year shows a slight reversal. The consistent difference between the adjusted and reported ratios highlights the impact of asset adjustments on the liquidity assessment. Continued monitoring of both current assets, current liabilities, and the rationale behind the adjustments is recommended.

The adjusted debt to equity ratio for the period demonstrates a consistent decline over the five-year span. While total debt exhibits a moderate decrease, total stockholders’ equity shows a more substantial increase, driving the observed trend. The adjusted figures closely mirror the reported debt to equity ratio, suggesting the adjustments made to debt and equity do not significantly alter the overall leverage picture.

Adjusted Debt to Equity Ratio - Overall Trend

The adjusted debt to equity ratio decreased from 0.96 in 2021 to 0.44 in 2025. This indicates a strengthening financial position with a reduced reliance on debt financing relative to equity.

Year-over-Year Changes

From 2021 to 2022, the adjusted debt to equity ratio experienced a decrease from 0.96 to 0.70. This initial decline continued, albeit at a slower pace, with ratios of 0.59, 0.56, and finally 0.44 in 2022, 2023, 2024, and 2025 respectively. The rate of decrease appears to be moderating in the later years.

Debt and Equity Components

Adjusted total debt remained relatively stable, fluctuating between US$12.541 billion and US$15.009 billion during the period. Conversely, adjusted total equity increased consistently, moving from US$15.699 billion in 2021 to US$28.270 billion in 2025. This growth in equity is the primary driver of the declining debt to equity ratio.

The consistent reduction in the adjusted debt to equity ratio suggests improved financial leverage and a potentially lower risk profile. The stability of adjusted total debt, coupled with the growth in adjusted total equity, indicates a positive trend in the company’s capital structure.

The information presents a five-year trend of debt and capital figures, culminating in reported and adjusted debt-to-capital ratios. Both total debt and total capital exhibit fluctuations over the period, influencing the observed ratios. A consistent pattern emerges where the adjusted debt-to-capital ratio mirrors the reported debt-to-capital ratio across all reported years.

Total Debt

Total debt decreased from US$14,195 million in 2021 to US$12,226 million in 2022, followed by a slight decrease to US$11,965 million in 2023. It then experienced a marginal increase to US$12,074 million in 2024 before decreasing again to US$11,636 million in 2025. The overall trend indicates a general reduction in total debt over the five-year period.

Total Capital

Total capital increased steadily from US$29,199 million in 2021 to US$29,911 million in 2022. This upward trend continued, reaching US$32,154 million in 2023, US$33,204 million in 2024, and culminating in US$37,745 million in 2025. The consistent growth suggests an expansion of the company’s capital base.

Reported Debt to Capital

The reported debt-to-capital ratio decreased consistently from 0.49 in 2021 to 0.41 in 2022, then to 0.37 in 2023 and 0.36 in 2024. This downward trend continued, reaching 0.31 in 2025. The decline indicates a decreasing proportion of debt relative to the total capital employed.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to total debt, decreasing from US$15,009 million in 2021 to US$12,925 million in 2022, US$12,775 million in 2023, and US$12,816 million in 2024. It concluded with a decrease to US$12,541 million in 2025. The trend reflects a general reduction in adjusted debt obligations.

Adjusted Total Capital

Adjusted total capital exhibited a consistent increase, moving from US$30,708 million in 2021 to US$31,315 million in 2022, US$34,611 million in 2023, US$35,558 million in 2024, and finally to US$40,811 million in 2025. This growth suggests an expanding capital structure when considering adjustments.

Adjusted Debt to Capital

The adjusted debt-to-capital ratio mirrored the reported ratio, decreasing from 0.49 in 2021 to 0.41 in 2022, 0.37 in 2023, 0.36 in 2024, and ultimately reaching 0.31 in 2025. The consistent decline indicates a strengthening capital structure and reduced leverage when considering adjustments to debt and capital figures. The identical values for reported and adjusted ratios suggest the adjustments have no material impact on the overall ratio calculation.

An examination of the financial information reveals trends in the company’s financial leverage, both as reported and as adjusted. Total assets and total stockholders’ equity both demonstrate consistent growth over the five-year period from 2021 to 2025. Reported financial leverage decreased steadily throughout the period, while adjusted financial leverage mirrored this trend, albeit at slightly lower levels.

Total Assets & Equity

Total assets increased from US$41,511 million in 2021 to US$54,868 million in 2025, representing a cumulative growth of approximately 32.1%. Total stockholders’ equity also exhibited growth, rising from US$15,004 million in 2021 to US$26,109 million in 2025, a cumulative increase of roughly 73.7%. The growth in equity outpaced the growth in assets, which is a positive indicator.

Reported Financial Leverage

Reported financial leverage decreased from 2.77 in 2021 to 2.10 in 2025. The rate of decline was most pronounced between 2021 and 2022 (a decrease of 0.33), and then gradually slowed. This indicates a decreasing reliance on debt financing relative to equity as reported.

Adjusted Financial Leverage

Adjusted financial leverage followed a similar downward trajectory, moving from 2.66 in 2021 to 1.95 in 2025. The magnitude of the decrease was comparable to the reported leverage, suggesting that the adjustments made to total assets and equity did not fundamentally alter the overall trend. The adjusted leverage consistently remained below the reported leverage throughout the period.

Relationship between Reported and Adjusted Leverage

The difference between reported and adjusted financial leverage remained relatively stable over the period, fluctuating between approximately 0.08 and 0.17. This suggests that the adjustments applied to arrive at the adjusted figures have a consistent, though not substantial, impact on the calculated leverage ratio. The consistent difference implies a systematic difference in how assets and/or equity are treated between the reported and adjusted calculations.

Overall, the company demonstrates a strengthening financial position as evidenced by the growth in both assets and equity, coupled with a consistent decline in financial leverage, both on a reported and adjusted basis. The adjustments to the financial figures do not significantly alter the observed trend of decreasing leverage.

The adjusted net profit margin exhibited fluctuations over the five-year period. While initially high, the metric demonstrated a declining trend from 2021 to 2025. This analysis details the observed patterns and potential implications.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin began at 14.08% in 2021. It decreased to 11.35% in 2022, before modestly recovering to 11.77% in 2023. A further decline was noted in 2024, falling to 10.55%, and continued into 2025, reaching 9.51%. This represents an overall decrease of approximately 32.3% from the initial value in 2021 to the final value in 2025.

Adjusted Net Income and Revenue Relationship

Revenue consistently increased from 2021 to 2024, growing from US$22,929 million to US$36,289 million. However, revenue experienced a slight decrease in 2025, settling at US$35,708 million. Despite the revenue growth, the adjusted net income did not increase proportionally, contributing to the observed decline in the adjusted net profit margin. Adjusted net income peaked at US$3,901 million in 2023, but decreased to US$3,396 million in 2025.

Comparison with Reported Net Profit Margin

The reported net profit margin also showed fluctuations, ranging from 8.20% to 12.68% during the period. While both the adjusted and reported net profit margins generally moved in the same direction, the adjusted margin consistently remained higher than the reported margin across all years. The difference between the two margins suggests the presence of significant adjustments made to net income.

Year-over-Year Changes

The largest year-over-year decrease in adjusted net profit margin occurred between 2021 and 2022, with a decline of 2.73 percentage points. The period between 2024 and 2025 also showed a notable decrease of 1.04 percentage points. The smallest change was observed between 2022 and 2023, with an increase of 0.42 percentage points.

The observed trend in the adjusted net profit margin warrants further investigation to understand the underlying drivers of the decline, particularly in relation to revenue growth and the nature of the adjustments made to net income. A detailed analysis of cost structures and operational efficiencies may provide additional insights.

The adjusted return on equity (ROE) exhibited a fluctuating pattern over the five-year period. While net income attributable to SLB and total stockholders’ equity generally increased from 2021 to 2023, the adjusted figures and resulting adjusted ROE present a more nuanced picture.

Adjusted ROE Trend

Adjusted ROE began at 20.57% in 2021, decreased to 17.34% in 2022, and then modestly increased to 17.86% in 2023. A further decline was observed in 2024, with adjusted ROE falling to 16.84%. The most significant decrease occurred in 2025, with adjusted ROE dropping to 12.01%.

Relationship between Adjusted Net Income and Adjusted Equity

Adjusted net income increased from US$3,229 million in 2021 to US$3,901 million in 2023, contributing to the initial ROE levels. However, adjusted net income decreased in both 2024 and 2025, reaching US$3,830 million and US$3,396 million respectively. Simultaneously, adjusted total equity consistently increased throughout the period, from US$15,699 million in 2021 to US$28,270 million in 2025. The combination of decreasing adjusted net income and increasing adjusted equity is the primary driver of the declining adjusted ROE trend observed in the later years.

Comparison with Reported ROE

Reported ROE generally increased from 2021 to 2023, peaking at 21.11% in 2024, before decreasing substantially to 12.92% in 2025. The adjusted ROE consistently remained below the reported ROE in 2021, 2023, and 2024, but was closer in 2022 and significantly lower in 2025. This suggests that adjustments to net income and equity have a considerable impact on the overall profitability picture.

The decline in adjusted ROE in 2024 and 2025 warrants further investigation to understand the underlying factors contributing to the decrease in adjusted net income relative to the growth in adjusted equity. The increasing equity base, while positive for solvency, is not translating into proportional gains in profitability as measured by adjusted ROE.

The adjusted return on assets (ROA) exhibited a fluctuating pattern over the five-year period. While generally remaining above 7%, the metric demonstrated both increases and decreases, concluding at a level consistent with the final year of the reported ROA.

Adjusted ROA Trend

The adjusted ROA began at 7.72% in 2021. A slight decrease was observed in 2022, falling to 7.34%. The metric then increased to 8.08% in 2023, followed by a modest decline to 7.78% in 2024. Finally, adjusted ROA decreased to 6.15% in 2025.

Relationship to Reported ROA

The adjusted ROA consistently differed from the reported ROA across all years. The adjustments generally resulted in a lower ROA figure in 2021 and 2022, but were relatively close in 2023 and 2024. Both the reported and adjusted ROA converged at 6.15% in 2025.

Asset Base

Adjusted total assets increased steadily from US$41,830 million in 2021 to US$55,203 million in 2025. This growth in the asset base occurred alongside the fluctuations in adjusted ROA, suggesting that changes in profitability, rather than asset scale, were the primary driver of the observed ROA variations.

Net Income Contribution

Adjusted net income also showed a fluctuating pattern, starting at US$3,229 million in 2021, decreasing to US$3,189 million in 2022, increasing to US$3,901 million in 2023, decreasing to US$3,830 million in 2024, and finally decreasing to US$3,396 million in 2025. The changes in adjusted net income directly influenced the adjusted ROA, as the asset base experienced consistent growth.

The final year’s adjusted ROA of 6.15% represents a decrease from the prior year and aligns with the reported ROA, indicating the adjustments had a neutral effect on the final year’s profitability metric.