Schlumberger Ltd. (NYSE:SLB)

Total Asset Turnover

There is a clear upward trend in both reported and adjusted total asset turnover ratios from 2020 through 2024. The reported ratio improved from 0.56 in 2020 to 0.74 in 2024, indicating enhanced efficiency in utilizing assets to generate sales. The adjusted ratio follows a parallel pattern, confirming this improvement in operational performance.

Current Ratio

The current ratio shows a gradual increase over the five-year period, rising from 1.23 reported and 1.26 adjusted in 2020 to 1.45 reported and 1.47 adjusted in 2024. This trend suggests strengthening short-term liquidity and better coverage of current liabilities by current assets.

Debt to Equity Ratio

This leverage ratio demonstrates a significant decline during the period, from 1.40 (reported and adjusted) in 2020 to approximately 0.57 reported and 0.56 adjusted by 2024. Such a decrease implies that the company is reducing its reliance on debt financing relative to equity, potentially lowering financial risk.

Debt to Capital Ratio

Similarly, the debt to capital ratio decreases steadily from 0.58 to 0.36 over the five years. The parallel trends in reported and adjusted figures indicate consistent deleveraging, which strengthens the company’s capital structure.

Financial Leverage

Financial leverage ratios show a downward trajectory from 3.52 reported and 3.34 adjusted in 2020, down to 2.32 reported and 2.17 adjusted in 2024. This reduction aligns with the decreased debt ratios, indicating less dependence on borrowed funds to finance assets.

Net Profit Margin

Reported net profit margin experienced a dramatic turnaround from a negative margin of -44.57% in 2020 to stable positive margins near 12% in the subsequent years, holding around 12.29% in 2024. Adjusted margins, while also recovering from a -51.41% low in 2020, show some fluctuation, peaking at 14.08% in 2021 and declining somewhat to 10.55% in 2024. This reflects a recovery to profitability but with some variance in adjusted earnings quality.

Return on Equity (ROE)

The reported ROE follows a strong improvement pattern, transitioning from a deeply negative -87.13% in 2020 to steady positive returns above 20% by 2023 and 2024. Adjusted ROE also improves markedly, though it peaks earlier in 2021 at 20.57%, then slightly decreases to 16.84% in 2024. The rise confirms an enhancement in generating shareholder returns, with adjusted figures suggesting some normalization after initial recovery.

Return on Assets (ROA)

Reported ROA shows consistent improvement over the five years from a negative -24.79% in 2020 to positive returns near 9.12% in 2024. Adjusted ROA follows a similar positive trend, recovering from -28.39% in 2020 to somewhat steady levels around 7.78% in the latest period, indicating better asset utilization in generating profits though with less upward momentum compared to the reported figure.

The analyzed financial data reveals several notable trends over the five-year period ending December 31, 2024. The revenue demonstrates a consistent upward trajectory, rising from approximately $23.6 billion in 2020 to about $36.3 billion in 2024. This steady increase indicates robust growth in the company's sales or services provided during this timeframe.

Total assets also show gradual growth, starting at around $42.4 billion in 2020 and increasing to nearly $49.0 billion by the end of 2024. This expansion of assets suggests ongoing investments or acquisitions, contributing to the company's capacity and operational base. The adjusted total assets follow a similar pattern, beginning at about $42.7 billion in 2020 and reaching approximately $49.3 billion in 2024, affirming the consistency in asset valuation adjustments.

Examining the efficiency of asset utilization through total asset turnover ratios uncovers a meaningful improvement over the period. Both the reported and adjusted total asset turnover ratios maintain a relatively stable position initially (0.56 and 0.55 respectively in 2020 and 2021) but increase notably to 0.74 by 2024. This rise signifies enhanced efficiency in generating revenue from assets, an encouraging sign of operational performance and management effectiveness.

Revenue

Increased steadily from $23.6 billion (2020) to $36.3 billion (2024), indicating continuous growth.

Total Assets

Expanded gradually from $42.4 billion (2020) to $49.0 billion (2024), highlighting asset base growth.

Adjusted Total Assets

Followed a similar increasing trend, reaching $49.3 billion by 2024, confirming consistent asset adjustment practices.

Total Asset Turnover (Reported and Adjusted)

Improved from approximately 0.56/0.55 in 2020 to 0.74 in 2024, demonstrating increased efficiency in asset use to generate revenue.

Overall, the data suggests a positive business development, marked by rising revenues, expanding assets, and improving asset utilization. These trends can be interpreted as indicators of increased operational effectiveness and sustained growth potential over the analyzed period.

Current Assets

The current assets showed a generally increasing trend over the five-year period. Starting at 12,919 million US dollars in 2020, the value slightly decreased in 2021 to 12,654 million but then progressively increased to reach 18,570 million by the end of 2024. This reflects a notable growth in liquid and short-term assets available.

Current Liabilities

Current liabilities also exhibited an upward trend from 10,491 million US dollars in 2020 to a peak of 13,395 million in 2023, followed by a moderate decrease to 12,811 million in 2024. Despite the fluctuations, the overall movement shows an increase in short-term obligations over time.

Reported Current Ratio

The reported current ratio, calculated as current assets divided by current liabilities, showed a steady improvement from 1.23 in 2020 to 1.45 in 2024. This indicates that the company's liquidity position strengthened, reflecting an increasing ability to cover short-term liabilities with short-term assets.

Adjusted Current Assets

Adjusted current assets, which may account for items excluded or adjusted for precision in liquidity assessment, followed a similar rising pattern to current assets. The figure increased from 13,220 million in 2020 to 18,895 million in 2024, consistently remaining higher than the reported current assets and supporting the trend of enhanced liquidity.

Adjusted Current Ratio

The adjusted current ratio moved upward from 1.26 in 2020 to 1.47 in 2024, reflecting an improvement in liquidity when considering adjusted assets. This consistent rise suggests increased financial stability and a more robust short-term financial position.

Total debt

The total debt has shown a consistent downward trend from 16,886 million US dollars at the end of 2020 to 12,074 million US dollars by the end of 2024. This gradual reduction indicates a strategic effort to decrease leverage over the period under review.

Total stockholders’ equity

Total stockholders’ equity has increased steadily from 12,071 million US dollars at the end of 2020 to 21,130 million US dollars at the end of 2024. This growth reflects an accumulation of retained earnings or potential capital injections, contributing to a stronger equity base.

Reported debt to equity ratio

The reported debt to equity ratio has declined markedly from 1.4 in 2020 to 0.57 in 2024. This reduction highlights an improved capital structure with a lower reliance on debt financing relative to equity, enhancing financial stability.

Adjusted total debt

Adjusted total debt shows a similar decreasing pattern, moving from 17,897 million US dollars in 2020 to 12,816 million US dollars in 2024. This adjusted figure reinforces the trend observed in reported debt, suggesting consistent deleveraging efforts when accounting for additional adjustments.

Adjusted total equity

Adjusted total equity has increased from 12,809 million US dollars in 2020 to 22,742 million US dollars in 2024, mirroring the growth in reported equity. This indicates enhanced financial resources and potentially higher net asset values.

Adjusted debt to equity ratio

The adjusted debt to equity ratio has declined from 1.4 in 2020 to 0.56 in 2024, closely aligned with the reported ratio trend. This consistent decrease confirms strengthened capitalization and reduced financial risk over the analyzed period.

Total Debt

Total debt exhibits a consistent downward trend from 16,886 million US dollars in 2020 to 12,074 million US dollars in 2024. This reduction suggests a strategic effort to deleverage or improve the company’s financial structure over the five-year period.

Total Capital

Total capital shows a gradual increase from 28,957 million US dollars in 2020 to 33,204 million US dollars in 2024. This upward movement indicates growth in the company’s overall financing, possibly reflecting retained earnings, additional equity issuance, or capital investment.

Reported Debt to Capital Ratio

The reported debt to capital ratio has steadily decreased from 0.58 in 2020 to 0.36 in 2024. This declining ratio highlights a significant reduction in financial leverage relative to capital, enhancing the company’s capital structure and potentially improving creditworthiness and financial stability.

Adjusted Total Debt

Adjusted total debt follows a similar declining trend as total debt, moving from 17,897 million US dollars in 2020 to 12,816 million US dollars in 2024. The consistent decrease supports observations of deleveraging when adjustments are taken into account.

Adjusted Total Capital

Adjusted total capital increases progressively from 30,706 million US dollars in 2020 to 35,558 million US dollars in 2024. This steady rise in adjusted capital confirms growth in investment or retained earnings after necessary adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrors the reported ratio, declining from 0.58 in 2020 to 0.36 in 2024. This consistency implies that adjustments do not materially affect the overall leverage trend, further emphasizing improved capital structure and reduced risk exposure over time.

Total Assets

Total assets showed a fluctuating but generally upward trend over the period from 2020 to 2024. After a slight decline from 42,434 million USD in 2020 to 41,511 million USD in 2021, total assets increased steadily to reach 48,935 million USD by the end of 2024. This indicates growth in the company's asset base in the later years following a minor setback in 2021.

Total Stockholders' Equity

Total stockholders’ equity demonstrated consistent growth throughout the observed years. Starting at 12,071 million USD in 2020, equity rose year-over-year to 21,130 million USD by the end of 2024. This marks a substantial increase in the company's net worth attributed to shareholders, suggesting improved retained earnings and possibly capital contributions.

Reported Financial Leverage

The reported financial leverage ratio declined steadily from 3.52 in 2020 to 2.32 in 2024. This downward trend implies a reduction in reliance on debt financing relative to equity, reflecting a deleveraging strategy or strengthening equity base. The lower leverage ratio suggests decreased financial risk over time.

Adjusted Total Assets

Adjusted total assets mirrored the pattern observed in total assets, with a slight decrease in 2021 followed by a progressive increase thereafter. The value rose from 42,735 million USD in 2020 to reach 49,260 million USD in 2024, slightly higher than the reported total assets figures, indicating adjustments likely for accounting or valuation purposes but preserving the overall growth pattern.

Adjusted Total Equity

The adjusted total equity followed a consistent upward trajectory similar to reported equity, increasing from 12,809 million USD in 2020 to 22,742 million USD in 2024. The adjustment results in higher figures relative to reported equity, enhancing the assessment of the company’s financed net assets with a stronger equity position.

Adjusted Financial Leverage

Adjusted financial leverage decreased from 3.34 in 2020 to 2.17 in 2024. This trend is consistent with the reported financial leverage decrease, confirming the company's effective reduction of debt relative to equity even after adjustments. The continuous decline signifies a more conservative capital structure and potentially lower financial risk.

The financial data demonstrates a significant improvement in profitability and revenue over the period from 2020 to 2024. Initially, in 2020, the company experienced a considerable net loss, both in terms of net income attributable to the company and adjusted net income, with negative margins exceeding 40% and 50%, respectively. Such substantial losses indicate a challenging year with potentially high expenses or impairments impacting the results.

From 2021 onwards, a clear recovery trend is observable. Net income attributable to the company turned positive in 2021, reaching 1,881 million USD, and steadily increased each year thereafter, reaching 4,461 million USD by the end of 2024. Similarly, adjusted net income followed this upward trajectory, moving from a loss of 12,134 million USD in 2020 to positive results above 3,800 million USD from 2022 onwards, indicating improved operational profitability.

Revenue shows a consistent growth pattern throughout the five years. Although there was a slight decline from 23,601 million USD in 2020 to 22,929 million USD in 2021, the figure then increased significantly to 36,289 million USD by 2024. This steady increase in revenue supports the observed improvements in net income figures.

The reported net profit margin mirrored these trends, sharply improving from a deeply negative -44.57% in 2020 to positive margins above 8% in 2021. The margin continued to improve, stabilizing around 12% in the last three years, demonstrating enhanced profitability relative to revenue. The adjusted net profit margin also followed a similar trend but showed a peak in 2021 at 14.08%, slightly declining to around 10.55% in 2024. This suggests that while adjusted profitability increased dramatically following the 2020 loss, it experienced a mild reduction in efficiency or increased adjusted costs during the latter period.

Overall, the data indicates a strong recovery from significant losses in 2020, with steady and sustainable revenue growth contributing to improved profitability. The margins' stabilization at positive double digits in recent years suggests the company has managed to control costs relative to revenue, though the slight decline in adjusted net margin toward 2024 could warrant monitoring for any emerging cost pressures or changes in pricing dynamics.

Net Income (Loss) Attributable to SLB

Shifted from a large loss in 2020 to consistent profits, increasing each year through 2024.

Revenue

Displayed steady recovery and growth after a minor dip in 2021, culminating in a substantial increase by 2024.

Reported Net Profit Margin

Improved markedly from deeply negative to stable positive margins around 12% from 2022 onwards.

Adjusted Net Income (Loss)

Transitioned from a significant loss in 2020 to positive results by 2021, maintaining profitability though slightly fluctuating thereafter.

Adjusted Net Profit Margin

Peaked in 2021, followed by a gradual decline, but still remained positive and above 10% by 2024.

Net Income (Loss) Attributable to SLB

The net income showed a significant turnaround over the period. In 2020, there was a substantial loss of 10,518 million US dollars. However, from 2021 onwards, net income became positive and demonstrated a consistent upward trend, increasing from 1,881 million in 2021 to 4,461 million in 2024, indicating strong profitability recovery and growth.

Total SLB Stockholders’ Equity

Stockholders’ equity steadily increased each year, starting at 12,071 million US dollars in 2020 and reaching 21,130 million in 2024. This consistent growth reflects accumulation of retained earnings and possibly additional equity financing or asset revaluation, contributing to a stronger financial foundation.

Reported Return on Equity (ROE)

The reported ROE mirrored the net income trend, showing a dramatic negative figure in 2020 at -87.13%, which reversed to positive values afterward. From 2021 through 2024, ROE improved progressively from 12.54% to 21.11%, suggesting enhanced profitability relative to shareholder equity and better operational efficiency.

Adjusted Net Income (Loss)

The adjusted net income, which likely excludes certain one-time or non-recurring items, also reflected a major loss in 2020 at -12,134 million US dollars. In 2021, this figure improved significantly to a positive 3,229 million and maintained a relatively stable level around 3,800 to 3,900 million through 2023 and 2024, indicating normalized profitability after adjustments.

Adjusted Total Equity

Adjusted total equity values were consistently above reported total equity, suggesting adjustments that recognize additional equity elements or fair value considerations. This measure rose steadily from 12,809 million in 2020 to 22,742 million in 2024, consistent with the reported equity growth trend, and supports an improving financial position.

Adjusted ROE

The adjusted ROE followed a trajectory similar to the reported ROE but demonstrated lower volatility. It started at a deeply negative level of -94.73% in 2020, then rose sharply to 20.57% in 2021, followed by a gradual decline to 16.84% in 2024. The decrease in adjusted ROE over the last years despite growing net income indicates that equity growth outpaced income increases, moderating returns on equity.

Net Income (Loss) Attributable to SLB

The net income showed a significant turnaround from a substantial loss of US$10,518 million in 2020 to a positive net income of US$1,881 million in 2021. This improvement continued in subsequent years, reaching US$4,461 million by 2024. The trend indicates a strong recovery and steady growth in profitability over the five-year period.

Total Assets

Total assets remained relatively stable between 2020 and 2021, with a slight decrease from US$42,434 million to US$41,511 million. From 2021 onwards, assets increased consistently each year, culminating in US$48,935 million in 2024. This growth suggests ongoing investment or accumulation of asset base supporting business activities.

Reported Return on Assets (ROA)

The reported ROA displayed a marked improvement from a negative -24.79% in 2020 to positive figures starting in 2021, with 4.53%. The upward trend continued steadily to 9.12% in 2024. The pattern reflects enhanced efficiency in utilizing assets to generate earnings, aligning with the net income recovery.

Adjusted Net Income (Loss)

Adjusted net income followed a pattern similar to the reported net income, with a large loss of US$12,134 million in 2020 shifting to a positive US$3,229 million in 2021. Thereafter, adjusted net income remained relatively stable, fluctuating slightly but maintaining upward momentum, reaching US$3,830 million in 2024. This suggests consistent underlying profitability after adjustments.

Adjusted Total Assets

Adjusted total assets exhibited a slight decrease from US$42,735 million in 2020 to US$41,830 million in 2021, mirroring the pattern seen in reported total assets. From 2021 onwards, there was steady growth each year, ending at US$49,260 million in 2024. This steady increase supports the company’s expanding asset base from an adjusted perspective.

Adjusted Return on Assets (ROA)

The adjusted ROA improved sharply from a negative -28.39% in 2020 to a positive 7.72% in 2021. Subsequently, it remained fairly stable with minor fluctuations, peaking at 8.08% in 2023 and slightly declining to 7.78% in 2024. The adjusted ROA trend indicates consistent asset utilization efficiency after adjustments, slightly less pronounced than the reported ROA.