Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Schlumberger Ltd., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.17 | 1.21 | 1.59 | 1.91 | |
| Quick ratio | 0.76 | 0.79 | 0.86 | 1.24 | 1.54 | |
| Cash ratio | 0.17 | 0.21 | 0.33 | 0.61 | 0.92 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Schlumberger Ltd.’s current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Schlumberger Ltd.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Schlumberger Ltd.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Schlumberger Ltd., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 15,530 | 15,731 | 18,497 | 23,927 | 26,912 | |
| Current liabilities | 13,098 | 13,486 | 15,282 | 15,059 | 14,121 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.19 | 1.17 | 1.21 | 1.59 | 1.91 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Kinder Morgan Inc. | 0.63 | 0.76 | 0.44 | 0.55 | 0.69 | |
| Current Ratio, Industry | ||||||
| Oil & Gas | 0.96 | 1.02 | 0.94 | 0.90 | 0.96 | |
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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,530 ÷ 13,098 = 1.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Schlumberger Ltd.’s current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Quick Ratio
Schlumberger Ltd., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash | 1,137 | 1,433 | 1,799 | 2,929 | 2,793 | |
| Short-term investments | 1,030 | 1,344 | 3,290 | 6,328 | 10,241 | |
| Receivables less allowance for doubtful accounts | 7,747 | 7,881 | 8,084 | 9,387 | 8,780 | |
| Total quick assets | 9,914 | 10,658 | 13,173 | 18,644 | 21,814 | |
| Current liabilities | 13,098 | 13,486 | 15,282 | 15,059 | 14,121 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.76 | 0.79 | 0.86 | 1.24 | 1.54 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Kinder Morgan Inc. | 0.49 | 0.64 | 0.29 | 0.36 | 0.39 | |
| Quick Ratio, Industry | ||||||
| Oil & Gas | 0.64 | 0.70 | 0.64 | 0.60 | 0.60 | |
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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,914 ÷ 13,098 = 0.76
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Schlumberger Ltd.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Schlumberger Ltd., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash | 1,137 | 1,433 | 1,799 | 2,929 | 2,793 | |
| Short-term investments | 1,030 | 1,344 | 3,290 | 6,328 | 10,241 | |
| Total cash assets | 2,167 | 2,777 | 5,089 | 9,257 | 13,034 | |
| Current liabilities | 13,098 | 13,486 | 15,282 | 15,059 | 14,121 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.17 | 0.21 | 0.33 | 0.61 | 0.92 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Kinder Morgan Inc. | 0.22 | 0.44 | 0.05 | 0.13 | 0.07 | |
| Cash Ratio, Industry | ||||||
| Oil & Gas | 0.20 | 0.25 | 0.18 | 0.16 | 0.19 | |
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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,167 ÷ 13,098 = 0.17
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Schlumberger Ltd.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |