Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
SLB N.V., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term investment activity ratios reveals generally positive trends from 2021 through 2024, followed by a mixed performance in 2025. Efficiency ratios demonstrate increasing asset utilization initially, with some moderation in the most recent year. The analysis below details observations for each ratio.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits an upward trend from 3.57 in 2021 to 4.93 in 2024, indicating increasing efficiency in generating revenue from fixed assets. However, this ratio decreased to 4.52 in 2025, suggesting a slight reduction in the efficiency of fixed asset utilization during that year. Overall, the ratio increased substantially over the period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also demonstrates growth from 3.28 in 2021 to 4.50 in 2024. The inclusion of operating lease and right-of-use assets results in lower values compared to the standard calculation, but the trend remains consistent. A decrease to 4.07 is observed in 2025, mirroring the trend in the standard net fixed asset turnover ratio.
- Total Asset Turnover
- The total asset turnover ratio shows a consistent increase from 0.55 in 2021 to 0.74 in 2024, indicating improved efficiency in utilizing all assets to generate revenue. The ratio then declined to 0.65 in 2025, representing a moderation of the prior growth. The overall trend remains positive, but the 2025 result suggests a potential stabilization or slight decrease in asset utilization efficiency.
- Equity Turnover
- The equity turnover ratio increased steadily from 1.53 in 2021 to 1.72 in 2024, signifying that the company was generating more revenue per dollar of equity. However, a notable decrease to 1.37 is observed in 2025. This represents a significant shift and suggests a reduced ability to generate revenue from equity investment in the final year of the observed period.
In summary, the period from 2021 to 2024 generally reflects improving asset utilization and revenue generation relative to invested capital. The 2025 results, however, indicate a potential shift in these trends, with decreases observed across multiple ratios. Further investigation may be warranted to understand the drivers behind the 2025 performance.
Net Fixed Asset Turnover
SLB N.V., net fixed asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Fixed assets less accumulated depreciation
= 35,708 ÷ 7,894 = 4.52
The analysis reveals a generally positive trend in net fixed asset turnover over the observed period, followed by a slight decrease in the most recent year. Revenue consistently increased from 2021 to 2024, while fixed assets also experienced growth, though at a slower pace. This resulted in improving efficiency in generating revenue from fixed assets.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 3.57 in 2021 to 4.93 in 2024, indicating a growing ability to generate sales revenue from the company’s investment in fixed assets. This suggests improved operational efficiency and asset utilization. However, the ratio decreased to 4.52 in 2025, potentially signaling a slight decline in efficiency or a shift in asset composition.
The increase in revenue outpaced the growth in fixed assets less accumulated depreciation between 2021 and 2024, driving the positive trend in the turnover ratio. The slower revenue growth and continued investment in fixed assets in 2025 contributed to the observed decrease in the ratio. Further investigation would be needed to determine the underlying causes of this recent shift, such as changes in production capacity, asset age, or sales strategies.
- Revenue Trend
- Revenue demonstrated consistent growth from $22,929 million in 2021 to $36,289 million in 2024. While still substantial at $35,708 million in 2025, the slight decrease from the prior year warrants attention. This change in revenue growth may be a contributing factor to the decline in net fixed asset turnover.
- Fixed Asset Trend
- Fixed assets less accumulated depreciation increased steadily from $6,429 million in 2021 to $7,894 million in 2025. The consistent investment in fixed assets, while supporting revenue growth, may have contributed to the moderation of the net fixed asset turnover ratio in the latest year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
SLB N.V., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Fixed assets less accumulated depreciation (including operating lease, right-of-use asset)
= 35,708 ÷ 8,773 = 4.07
The analysis reveals a generally positive trend in net fixed asset turnover, alongside increasing revenue and fixed assets. Over the observed period, the ratio demonstrates improvement, though a slight deceleration in growth is noted towards the end of the period.
- Revenue
- Revenue experienced consistent growth from 2021 to 2024, increasing from US$22,929 million to US$36,289 million. A minor decrease is observed in 2025, with revenue reaching US$35,708 million. This suggests a period of strong expansion followed by a potential stabilization or slight contraction.
- Fixed Assets (including operating lease, right-of-use asset)
- Fixed assets, inclusive of operating lease and right-of-use assets, exhibited a steady increase throughout the period, rising from US$6,982 million in 2021 to US$8,773 million in 2025. This indicates ongoing investment in fixed assets to support operational growth.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio increased from 3.28 in 2021 to 4.50 in 2024, signifying improved efficiency in generating revenue from fixed assets. This suggests the company is becoming more effective at utilizing its fixed asset base. However, the ratio decreased slightly to 4.07 in 2025, potentially reflecting the impact of the revenue decrease and continued investment in fixed assets. The rate of increase slowed between 2023 and 2024 (0.34) compared to the prior year (0.13), and then decreased in 2025 (-0.43). This suggests a potential shift in the relationship between revenue and fixed asset investment.
In summary, the company demonstrates increasing efficiency in utilizing its fixed assets to generate revenue, although the most recent year shows a slight decline in this efficiency. Continued monitoring of this ratio, alongside revenue and fixed asset trends, is recommended to assess the sustainability of this performance.
Total Asset Turnover
SLB N.V., total asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= 35,708 ÷ 54,868 = 0.65
The analysis reveals a generally positive trend in total asset turnover, followed by a recent decline. Revenue consistently increased from 2021 to 2024, while total assets also increased throughout the period. However, the rate of revenue growth appears to be slowing, and asset growth accelerated in 2025, resulting in a decreased turnover ratio.
- Total Asset Turnover
- The total asset turnover ratio exhibited an increasing trend from 0.55 in 2021 to 0.74 in 2024. This indicates improving efficiency in utilizing assets to generate revenue during this timeframe. Each year from 2021 to 2024 saw an increase in the ratio, suggesting a strengthening relationship between revenue and asset base. However, in 2025, the ratio decreased to 0.65. This decline suggests a reduced efficiency in asset utilization, potentially due to a larger increase in total assets compared to the increase in revenue.
The increase in total asset turnover from 2021 to 2024 suggests the company was becoming more effective at converting its investments in assets into sales. The subsequent decrease in 2025 warrants further investigation to determine the underlying causes. Potential factors could include increased investment in less productive assets, a slowdown in sales, or changes in accounting practices. The company’s ability to maintain or improve its asset turnover ratio will be crucial for sustained profitability and growth.
- Revenue and Asset Relationship
- From 2021 to 2024, revenue grew from US$22,929 million to US$36,289 million, representing a substantial increase. Total assets increased from US$41,511 million to US$48,935 million over the same period. The consistent growth in both metrics, coupled with the rising turnover ratio, indicates a healthy correlation between asset investment and revenue generation. However, in 2025, revenue growth slowed to US$35,708 million, while assets increased significantly to US$54,868 million, contributing to the observed decline in the turnover ratio.
Continued monitoring of these trends is recommended. Analyzing the composition of asset growth in 2025, alongside a detailed review of revenue drivers, will provide valuable insights into the reasons for the decreased asset turnover and inform future strategic decisions.
Equity Turnover
SLB N.V., equity turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Revenue ÷ Total SLB stockholders’ equity
= 35,708 ÷ 26,109 = 1.37
The equity turnover ratio demonstrates a generally increasing trend from 2021 to 2024, followed by a decrease in the most recent year presented. This indicates a changing relationship between revenue generation and the utilization of stockholders’ equity.
- Equity Turnover Trend
- The equity turnover ratio increased from 1.53 in 2021 to 1.72 in 2024, suggesting that the company was becoming increasingly efficient in generating revenue from each dollar of stockholders’ equity. This improvement could be attributed to increased operational efficiency, effective asset management, or a combination of factors. However, the ratio declined to 1.37 in 2025, indicating a reduced efficiency in revenue generation relative to equity.
Revenue exhibited consistent growth from 2021 to 2024, increasing from US$22,929 million to US$36,289 million. While revenue experienced a slight decrease in 2025 to US$35,708 million, it remained significantly higher than the 2021 level. This revenue growth generally supported the increasing equity turnover ratio observed during the 2021-2024 period.
- Stockholders’ Equity Growth
- Total stockholders’ equity also increased consistently throughout the period, rising from US$15,004 million in 2021 to US$26,109 million in 2025. The growth in equity, while positive, did not keep pace with the revenue growth in the earlier years, contributing to the rising equity turnover. The more substantial increase in equity in 2025, coupled with a slight revenue decrease, likely explains the subsequent decline in the equity turnover ratio.
The decrease in equity turnover in 2025 warrants further investigation. Potential contributing factors could include increased investment in assets that have not yet generated corresponding revenue, changes in financing strategies, or a temporary slowdown in operational efficiency. The interplay between revenue and equity levels is crucial in understanding this ratio’s fluctuations.