Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
SLB N.V., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibits a general downward trend over the analyzed period, starting at 1.32 and decreasing to 0.5 by the end. This indicates a gradual reduction in reliance on debt financing relative to equity. The ratio declines steadily through the initial years, with minor fluctuations observed around the mid-term period before continuing to decrease towards the end.
- Debt to Capital Ratio
- Similarly, the debt to capital ratio decreases from 0.57 to 0.33 across the timeline. This pattern aligns with the debt to equity trend, suggesting an overall conservative shift in capital structure by lowering the proportion of debt. The decline is relatively consistent, with marginal increases in certain intervals but an overall direction toward reduced debt.
- Debt to Assets Ratio
- The debt to assets ratio also falls from 0.39 to 0.23, reflecting a decline in the proportion of assets financed through debt. This trend underscores a strengthening balance sheet and possibly improved asset management or debt repayment strategies. Minor oscillations appear mid-period, but they do not alter the predominantly downward trajectory.
- Financial Leverage Ratio
- Financial leverage declines from 3.35 to 2.15 over the full period, illustrating a decrease in the degree to which total assets are financed by equity. This reduction aligns with the decreasing debt ratios and indicates enhanced equity backing relative to total assets, which may contribute to reduced financial risk.
- Interest Coverage Ratio
- The interest coverage ratio shows a strong increasing trend, rising from a negative value of -4.01 to a high of 12.19 before slightly declining to 9.43. This improvement highlights a significant enhancement in the company's ability to meet interest obligations from operating earnings. The negative starting point likely indicates previous difficulties in covering interest costs, which transition into solid coverage levels as the period progresses. The later slight decline may warrant monitoring but does not undermine the overall positive trajectory.
Debt Ratios
Coverage Ratios
Debt to Equity
SLB N.V., debt to equity calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total SLB stockholders’ equity
= ÷ =
- Total Debt
- The total debt shows a general downward trend from the first quarter of 2021 through the end of 2024, decreasing from $16,583 million to $12,074 million. Notable declines occur particularly in 2021 and 2022. However, starting in 2025, an uptick in debt levels is observed, with values increasing up to $14,002 million before declining again towards about $12,766 million by the third quarter of 2025. This indicates some volatility in debt management during 2025 after a period of sustained reduction.
- Total SLB Stockholders’ Equity
- Stockholders’ equity demonstrates a consistent upward trajectory throughout the period, rising from $12,543 million in the first quarter of 2021 to $25,635 million by the third quarter of 2025. This steady increase reflects a significant strengthening of the company’s equity base, with particularly strong growth from early 2023 onward, suggesting enhanced profitability or capital injections over time.
- Debt to Equity Ratio
- The debt to equity ratio decreases substantially from 1.32 in March 2021 to a low of approximately 0.57 towards the end of 2024, indicating improving financial leverage and a reduction in reliance on debt relative to equity. However, in 2025, some reversal occurs, with the ratio rising to 0.72 before declining again to 0.50 in the third quarter. This fluctuation in 2025 may point toward strategic adjustments in the company’s capital structure or changing market conditions affecting financing decisions.
- Overall Insights
- The analysis reveals a strategic focus on debt reduction alongside equity growth over the majority of the period, resulting in improving leverage ratios and presumably a stronger balance sheet. The uptick in debt and debt to equity ratios in early 2025 suggests a period of recalibration, although the company maintains a relatively conservative leverage position by the end of the period. The persistent increase in shareholders’ equity throughout indicates sustained value creation for owners.
Debt to Capital
SLB N.V., debt to capital calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
The analysis of the financial data reveals several notable trends regarding the company's capital structure over the examined periods.
- Total Debt
- The total debt amount demonstrates a general downward trend from March 31, 2021, through December 31, 2022, declining from approximately $16.6 billion to about $12.2 billion. This decline indicates a significant reduction in leverage over this time frame. However, beginning in the first quarter of 2023, the total debt slightly fluctuates, rising to near $13.3 billion by June 30, 2023, before declining again and then showing some variability through to September 30, 2025. Although the later period exhibits some debt increases, the total remains generally below the early 2021 levels.
- Total Capital
- The total capital figures reveal a steady upward trend throughout the entire period. From approximately $29.1 billion at the beginning of 2021, total capital increases consistently, peaking at around $38.4 billion by September 30, 2025. This steady growth suggests expanding capital resources, potentially from retained earnings, equity issuances, or other sources augmenting the company’s financial base.
- Debt to Capital Ratio
- The debt to capital ratio displays a reassuring downward pattern from 0.57 in March 2021 to a low near 0.33 by September 2025. This indicates the company's decreasing dependence on debt financing relative to its total capital. The ratio decline is quite pronounced in the initial periods, reflecting active deleveraging or capital growth. A slight increase appears around mid-2025, but overall, the ratio signifies strengthened financial stability and a more balanced capital structure as the company favors equity or other capital forms over debt.
In summary, the company has improved its financial position by reducing debt and increasing total capital over the analyzed quarters. The debt to capital ratio trend corroborates this positive shift, illustrating enhanced solvency and potentially lower financial risk. The slight fluctuations in debt levels and ratio in the later periods suggest ongoing active management of the capital structure to align with strategic objectives.
Debt to Assets
SLB N.V., debt to assets calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
The analysis of the company's quarterly financial data reveals several key trends related to its debt, assets, and financial leverage over the reported periods.
- Total debt
- Total debt exhibited a gradual decline from March 31, 2021, through December 31, 2021, decreasing from approximately $16.6 billion to around $14.2 billion. This downward trend continued, albeit with some fluctuations, into 2022 and early 2023, reaching a low of about $11.97 billion at the end of 2022. Subsequently, total debt showed some variability, with increases observed in mid-2023 and early 2024, peaking again near $13.2 billion before slightly declining toward the end of 2024. The first three quarters of 2025 demonstrated renewed fluctuations with total debt rising to around $14 billion before decreasing to approximately $12.8 billion by September 2025. Overall, the company has managed to reduce its total debt significantly compared to early 2021 levels but has experienced intermittent increases.
- Total assets
- Total assets showed a general upward trend over the entire period under review. Starting at about $42.0 billion in March 2021, total assets experienced moderate growth, crossing $44.8 billion by mid-2023 and continuing to rise steadily thereafter. By September 2025, total assets reached a substantially higher level, approximately $55.1 billion, reflecting an increase of nearly 31% from the initial period. This growth indicates ongoing expansion in the company's asset base, with occasional minor declines, most notably toward the end of 2024 and early 2025, but the overall trajectory remains positive and robust.
- Debt to assets ratio
- The debt to assets ratio reveals a decreasing trend in financial leverage from March 2021 to December 2022, dropping from roughly 0.39 to a low of 0.25. This decline indicates that the company has been lowering its relative debt burden compared to asset growth during this phase. In 2023 and early 2024, the ratio showed some variability but largely remained around the mid-0.20 range, with a slight increase observed during mid-2025 to nearly 0.29 before falling again to about 0.23 by September 2025. Overall, the ratio's downward movement suggests improved financial stability and reduced dependency on debt financing, although some short-term fluctuations imply tactical adjustments in capital structure.
In summary, the data reflects a strategic effort to reduce overall debt levels while simultaneously expanding the asset base, resulting in improved leverage ratios. Fluctuations in debt and the debt-to-assets ratio in recent quarters suggest a degree of active portfolio or capital structure management, potentially aligned with operational or investment decisions. The company's financial profile appears to be strengthening over the long term with enhanced asset accumulation and controlled leverage.
Financial Leverage
SLB N.V., financial leverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total SLB stockholders’ equity
= ÷ =
- Total Assets
- The total assets exhibit a generally upward trend over the examined period, increasing from approximately 42,036 million US dollars in March 2021 to 55,093 million US dollars by September 2025. Despite fluctuations within some quarters, the overall growth suggests consistent asset accumulation. Notably, the growth pace appears to accelerate starting in late 2023 and continues through 2025.
- Total Stockholders’ Equity
- The stockholders’ equity shows an increasing trajectory from 12,543 million US dollars in the first quarter of 2021, peaking at 21,511 million in the third quarter of 2024. However, a decline is observed after that peak, falling to 19,515 million in June 2025, before recovering notably to 25,635 million by September 2025. This pattern indicates some volatility in equity levels, potentially related to capital structure changes or performance variations during the mid-to-late 2024 period.
- Financial Leverage
- The financial leverage ratio exhibits a clear downward trend throughout most of the timeline, decreasing from a high of 3.35 in March 2021 to a low point of approximately 2.15 in September 2025. This progression suggests a reduction in reliance on debt financing relative to equity. Minor fluctuations occur, particularly a slight increase during mid-2025, which may relate to the temporary dip in equity.
- Overall Analysis
- Across the reported periods, the company shows a strengthening balance sheet characterized by asset growth and declining leverage, which may imply improved financial stability and risk management. The temporary declines in equity and corresponding increases in leverage during mid-2024 to mid-2025 warrant further investigation to understand underlying causes. The resumption of equity growth and further leverage reduction by the end of the period indicate a recovery from this phase. The trends suggest a strategic focus on asset growth accompanied by prudent financing decisions.
Interest Coverage
SLB N.V., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= ( + + + )
÷ ( + + + )
=
The Earnings Before Interest and Tax (EBIT) exhibits a generally upward trend from March 2021 through December 2024, reflecting improving operational profitability over this period, with some fluctuations. Notably, EBIT rose steadily from $522 million in March 2021 to a peak of $1643 million in September 2024. However, subsequent quarters show a decline, with EBIT falling to $1142 million by September 2025, suggesting some challenges or seasonal effects impacting earnings toward the end of the observed period.
Interest expense remains relatively stable across the quarters, fluctuating moderately between $113 million and $147 million. The smallest interest expense is observed in the first quarter of 2024 at $113 million, while the highest interest expenses occur toward the later quarters, peaking at $147 million in June 2025. Despite slight increases in interest costs, the level of interest expense does not vary dramatically, indicating a consistent cost of debt or financing structure over time.
The interest coverage ratio presents a significant improvement from the negative value of -4.01 in March 2021 to consistently high figures after mid-2021. This ratio surpasses 10.0 starting from March 2023 and remains above this threshold until September 2025, albeit with a gentle decline from a high of approximately 12.19 in September 2024 to 9.43 in September 2025. This trend indicates a much stronger ability to cover interest expenses with EBIT, reflecting improved financial health and operational efficiency. The early negative value and subsequent rapid improvement imply a prior period of difficulty with earnings insufficient to cover interest, followed by a recovery sustained over several years.
Overall, the data indicate strengthening operational earnings accompanied by stable interest expenses, leading to enhanced interest coverage over the analyzed period. The slight recent downturns in EBIT and the interest coverage ratio toward 2025 warrant attention, suggesting potential emerging risks or cyclical factors affecting profitability and financial stability.