Schlumberger Ltd. (NYSE:SLB)

Current Ratio

The current ratio demonstrates moderate fluctuations over the observed periods, generally remaining above 1.2. Initially, it held steady around 1.22-1.23 through 2020, then increased gradually to peak at 1.4 in Q3 2022. Following this peak, the ratio exhibits some volatility but maintains an upward trend reaching 1.49 in Q2 2024 before declining again towards approximately 1.31 in mid-2025. This pattern suggests a generally stable and improving short-term liquidity position with occasional dips in some quarters.

Quick Ratio

The quick ratio shows similar but more pronounced variability compared to the current ratio. Starting near 0.81 in early 2020, it rises to a higher plateau around 0.9 during mid-2021 and again reaches a peak of just over 1.0 in Q3 2024. However, the ratio experiences dips below 0.8 in some periods, such as early 2022 and late 2022. This indicates fluctuations in liquid assets excluding inventories, reflecting changes in immediate liquidity availability with a generally improving trend through mid-2024 before a subsequent mild decline.

Cash Ratio

The cash ratio is the most variable and remains substantially lower than the current and quick ratios throughout the timeline, fluctuating between approximately 0.2 and 0.36. There are occasional increases, such as spikes around mid-to-late 2024 reaching 0.35-0.36, but these are followed by declines. The ratio shows a general pattern of modest improvement over time, indicating fluctuations in the company's most liquid assets (cash and cash equivalents) relative to current liabilities, but persistent conservatism in holding cash liquid assets.

Overall Observations

Collectively, the liquidity ratios depict a company maintaining a stable to improving short-term liquidity position over the multi-year period. The current and quick ratios show a gradual strengthening of the ability to meet short-term obligations, with the quick ratio's increases implying reliance on more immediately convertible assets than inventory. The cash ratio, while lower, supports this finding by indicating occasional increases in cash reserves but overall a conservative cash holding policy. Some volatility suggests responsive adjustments to changing operational or market conditions, but no indications of liquidity distress are evident.

The financial data indicates the behavior of current assets, current liabilities, and the resulting current ratio over a series of quarterly periods. Throughout the observed timeframe, current assets show a general upward trend, starting from 16,266 million US dollars at the end of March 2020. Following a decline in the first half of 2020, the values gradually increase, reaching a peak of approximately 18,595 million US dollars by March 2025, with minor fluctuations along the way.

Current liabilities, on the other hand, exhibit a different pattern. Initially, current liabilities decrease from 13,262 million US dollars at the end of March 2020 to a lower point of 8,784 million US dollars by June 2021. Subsequently, there is an upward movement in liabilities, peaking at 15,036 million US dollars in June 2025, surpassing the initial values observed at the start of the period.

The current ratio, which assesses short-term liquidity by comparing current assets to current liabilities, displays fluctuations consistent with the movements in assets and liabilities. The ratio starts around 1.23 in March 2020, increases to a high near 1.49 by September 2024, indicating improved liquidity, then declines somewhat to approximately 1.31 by June 2025. These shifts suggest variations in the company's ability to cover short-term obligations, with a relatively strong liquidity position maintained for most of the observed intervals.

Current Assets

Experienced an initial decline in early 2020, followed by steady growth, peaking near the end of the timeframe.

Current Liabilities

Fell significantly through mid-2021, then rose considerably, ending higher than initial levels.

Current Ratio

Started near 1.23, rose to a peak near 1.49 by late 2024, then decreased slightly, reflecting fluctuations in liquidity status.

Overall, the data reflects a dynamic interplay between assets and liabilities, with liquidity improving after mid-2020 and remaining robust until late 2024, followed by a moderate reduction in the current ratio. This indicates periodic adjustments in working capital management and short-term financial strategy.

Total Quick Assets

Total quick assets exhibit an overall fluctuating pattern across the periods observed. Starting at 10,830 million US dollars in March 2020, there is an initial decline through the rest of 2020 reaching a low of 8,253 million by December 2020. This is followed by a modest recovery in 2021, peaking at 8,454 million at the end of that year. The values increase steadily in 2022, reaching a higher level of around 10,259 million in the third quarter, before experiencing slight volatility towards the end of the year. The asset levels climb further in 2023, peaking at 11,801 million in the fourth quarter. The trend continues with slight fluctuations into 2024, with values moving between approximately 11,713 million and 12,722 million. However, a slight downward adjustment is seen in early to mid 2025, ending at 12,333 million.

Current Liabilities

Current liabilities demonstrate a decreasing trend initially, dropping significantly from 13,262 million in March 2020 to 8,784 million by June 2021. After this trough in mid-2021, liabilities increase again, fluctuating but generally rising to reach 12,018 million by December 2022. This upward trend continues into 2023 and 2024, with liabilities reaching a peak of 13,395 million in the fourth quarter of 2023. The liabilities remain elevated in early 2025, although there is a notable spike to 15,036 million in March 2025 followed by a decrease to 14,035 million in June 2025.

Quick Ratio

The quick ratio shows variability reflecting the interplay between quick assets and current liabilities. The ratio begins below 1.0 at 0.82 in March 2020 and remains below this threshold through 2020, indicating that quick assets were insufficient to cover current liabilities fully. In 2021, the quick ratio improves, peaking at 0.91 in June 2021, before dipping again toward the end of that year. Through 2022 and 2023, the ratio generally remains near or just below 1.0, with occasional increases to 0.92 and a peak of 0.94 in the third quarter of 2023, indicating improved short-term liquidity. During 2024, the ratio crosses 1.0 in some quarters (1.02 in the third quarter), suggesting periods of stronger liquidity relative to liabilities. However, the ratio declines below 1.0 again in the early quarters of 2025, reaching 0.83 by March 2025 before a slight recovery to 0.88 in June 2025. Overall, the quick ratio indicates fluctuating liquidity conditions with some periods of adequacy and others where quick assets are less than current liabilities.

Summary Insights

Over the analyzed periods, the company's total quick assets and current liabilities both exhibit significant fluctuations, influenced by external and internal business conditions. The initial reduction in quick assets and liabilities during 2020 likely reflects the response to market disruptions, followed by adjustments and recovery phases in subsequent years. The quick ratio, oscillating around the critical threshold of 1.0, reflects the ongoing challenges in maintaining optimal liquidity; however, the improvement observed during parts of 2023 and 2024 suggests periods of enhanced financial stability. The spike in liabilities in early 2025 necessitates close monitoring to ensure liquidity is not compromised. Overall, while there are periods of improved liquidity, the frequent volatility underscores the need for vigilant financial management and possibly strategic actions to stabilize working capital components.

Total Cash Assets

Over the observed periods, total cash assets display notable fluctuations. Initially, from March 31, 2020, through December 31, 2020, there is a general decline from 3,344 million US dollars to 3,006 million. This is followed by a recovery phase through 2021, peaking at 3,139 million at the year's end. In 2022, cash assets again oscillate, reaching a low point of 2,649 million in the first quarter before rebounding to 3,609 million by the third quarter and dipping slightly to 2,894 million by year-end. The trend for 2023 shows growth, peaking at 3,989 million by the fourth quarter. The data for 2024 shows generally increasing cash assets, reaching 4,669 million by the third quarter before a decrease to 3,897 million by March 31, 2025. Overall, cash assets show a pattern of volatility with periods of recovery following declines, with an upward trend evident in the most recent years.

Current Liabilities

Current liabilities decrease steadily from 13,262 million in March 2020 to 8,784 million in June 2021. Post mid-2021, liabilities reverse the downward trend and steadily rise through the subsequent quarters, reaching a peak of 13,395 million by December 2023. In 2024 and early 2025, current liabilities remain elevated, fluctuating between approximately 12,699 million and 15,036 million. This suggests increased short-term obligations in recent periods compared to mid-2021.

Cash Ratio

The cash ratio demonstrates moderate variability across the time frame. It begins at 0.25 in March 2020 and peaks at 0.33 in September 2020. Subsequently, it generally stabilizes around 0.3 through 2021 with minor fluctuations. In 2022, the ratio declines to as low as 0.20 in March 2023 but then recovers to approximately 0.3 by December 2023. By 2024, the ratio improves, hitting a high of 0.36 in September 2024, before dropping to 0.26 in March 2025. This oscillation indicates variations in liquidity management relative to current liabilities, with improved liquidity in mid-2024 followed by a slight decline.