Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
SLB N.V., profitability 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).
The financial performance exhibits several notable trends over the analyzed periods, reflecting an overall strengthening in profitability metrics, followed by a recent moderation.
- Gross Profit Margin
- The gross profit margin shows a consistent upward trajectory, improving from 11.65% at the beginning of the period to a peak above 20% during late 2024 and early 2025. However, a decline is observed after this peak, with the margin decreasing to 19.11% by the last reported period, indicating a slight erosion in cost efficiency or pricing power.
- Operating Profit Margin
- Operating profit margin starts negatively but shows a rapid recovery early on, turning positive and growing steadily from the mid-point of 2021. It reaches a high point close to 16.55% in early 2024 before a gradual decline to 13.54% by the most recent quarter. This trend implies improved operational control and scalability that slightly reverses toward the end.
- Net Profit Margin
- Initially negative, the net profit margin rises significantly, stabilizing in the range of approximately 12-13% from early 2023 through 2024 before tapering off slightly toward the end of the latest quarters. The pattern suggests enhanced bottom-line profitability with strong control over non-operating expenses and taxes, followed by a minor weakening of net earnings.
- Return on Equity (ROE)
- ROE follows a similar pattern to profit margins, initially negative but improving rapidly to reach over 20% in multiple quarters spanning late 2023 to early 2025. The peak shows efficient use of shareholders’ equity to generate profits. However, there is a sharp dip towards the end of the period, declining to 14.22%, which may reflect changing capital structure, decreased profitability, or increased equity base not yet matched by earnings growth.
- Return on Assets (ROA)
- The return on assets improves from a negative start to near 9-9.1% in late 2023 to early 2025, indicating better asset utilization for generating net income. This is followed by a decline to 6.62% in the last reported period, signaling either reduced asset efficiency or lower profitability at the asset level.
In summary, the data reveals a strong recovery and solid growth in profitability and returns through 2023 and most of 2024. Margins and returns hit cyclical peaks in these years, after which a gradual decline occurs, suggesting caution may be warranted regarding margin pressures or operational challenges ahead. The weakening returns on equity and assets toward the end could imply emerging inefficiencies or external factors impacting performance.
Return on Sales
Return on Investment
Gross Profit Margin
SLB N.V., gross profit margin 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
Gross profit margin = 100
× (Gross marginQ3 2025
+ Gross marginQ2 2025
+ Gross marginQ1 2025
+ Gross marginQ4 2024)
÷ (RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024)
= 100 × ( + + + )
÷ ( + + + )
=
The financial data reveals notable developments in both revenue and profitability over the analyzed periods. Generally, the company has experienced growth in revenue along with an improvement in gross margins, although recent quarters show some signs of deceleration and slight margin compression.
- Revenue Trends
- Revenue has shown a consistent upward trend from March 2021 through December 2024, rising from approximately $5.2 billion to over $9.2 billion. This indicates steady sales growth across the majority of quarters. After reaching a peak in late 2024, revenue levels appear to plateau with some fluctuations, moving within the range of $8.4 billion to $8.9 billion into 2025. This suggests a possible stabilization or mild volatility in sales moving forward.
- Gross Margin in Absolute Terms
- The gross margin in absolute dollar terms has generally increased in line with revenue growth. It rose from $719 million in the first quarter of 2021 to about $1.96 billion by the end of 2024. The margin peaked in late 2024 but retreated somewhat in 2025, reaching approximately $1.56 billion by the third quarter. This pattern mirrors the revenue trend and indicates that while profit dollars have expanded considerably, there has been some recent easing in absolute gross margin.
- Gross Profit Margin Percentage
- The gross profit margin percentage shows a clear improving trend from 11.65% in the first quarter of 2021 to over 20% during much of 2023 and 2024. This reflects enhanced operational efficiency or improved pricing power over the period. However, in 2025, this margin measure declines slightly to around 19%, and further down to approximately 19.1% by the third quarter of 2025. This suggests that the company may be facing increased cost pressures, competitive pricing challenges, or changes in product mix that are impacting profitability ratios despite high revenue levels.
- Summary of Insights
- The company has delivered strong revenue growth and significant improvement in gross profit margins over the studied quarters. The upward trajectory in gross margin percentage indicates effective cost management or value generation capabilities through the middle and latter part of the timeline. However, the most recent data points towards a possible plateauing of growth and some easing in profit margins, which may warrant further investigation into operational efficiencies, pricing strategies, or market conditions to sustain profitability levels.
Operating Profit Margin
SLB N.V., operating profit margin 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
Operating profit margin = 100
× (Operating income (loss)Q3 2025
+ Operating income (loss)Q2 2025
+ Operating income (loss)Q1 2025
+ Operating income (loss)Q4 2024)
÷ (RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Revenue Trends
- Revenue demonstrates a general upward trajectory from the first quarter of 2021 through the end of 2024, starting at $5,223 million and reaching a peak of $9,284 million in the final quarter of 2024. The increase is steady with occasional fluctuations, notably a slight decline in early 2023 followed by resumed growth in subsequent quarters. However, in early 2025, revenue shows a moderate decrease with values fluctuating around the $8,500 to $8,900 million range, indicating potential stabilization or market pressures affecting growth.
- Operating Income (Loss) Patterns
- Operating income has shown strong growth from $503 million in March 2021, peaking at $1,547 million in September 2024. The trajectory follows a consistent increase alongside revenues until late 2024. Post-peak, operating income declines to around $1,064 million by the third quarter of 2025, signaling emerging operational challenges or cost pressures impacting profitability despite relatively stable revenue figures during this period.
- Operating Profit Margin Analysis
- The operating profit margin exhibits a notable improvement from a negative figure of -11.73% in the first quarter of 2021 to a high of approximately 16.55% in the first quarter of 2024. This progression reflects enhanced operational efficiency and profitability over the four-year span. However, following this peak, the margin gradually contracts to 13.54% by the third quarter of 2025, suggesting a decline in profit efficiency potentially attributable to increased expenses, pricing pressures, or other operational factors despite ongoing revenue strength.
- Overall Insights
- The data portrays a company experiencing significant growth in both revenue and operating income over the initial period analyzed, accompanied by substantial improvements in operating profit margins. Toward the end of the period, revenues plateau and operating income along with profit margins decline modestly, indicating potential emerging challenges that could require attention. The trend suggests a transition phase where maintaining prior growth and profitability levels may be increasingly difficult.
Net Profit Margin
SLB N.V., net profit margin 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
Net profit margin = 100
× (Net income (loss) attributable to SLBQ3 2025
+ Net income (loss) attributable to SLBQ2 2025
+ Net income (loss) attributable to SLBQ1 2025
+ Net income (loss) attributable to SLBQ4 2024)
÷ (RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024)
= 100 × ( + + + )
÷ ( + + + )
=
The financial data over the observed periods reveal several notable trends and patterns. Revenue shows a general upward trajectory over the years with some fluctuations in quarterly performance. Net income attributable to the company exhibits similar growth alongside revenue, though there are periods where net income growth does not strictly match revenue increases. The net profit margin percentage demonstrates a significant improvement early in the timeline and then stabilizes with minor variations.
- Revenue Trends
- Revenue increased from approximately $5.2 billion in March 2021 to peaks near $9.3 billion by late 2024. This reflects steady growth overall. The quarterly data suggest seasonal variations, with some quarters consistently higher than others, but the long-term direction remains upward.
- Net Income Trends
- Net income rose from around $299 million at the start of 2021 to a high point of approximately $1.2 billion in late 2024, indicating substantial profitability gains. However, some quarters show declines or slower growth in net income despite revenues continuing to climb, pointing to possible margin pressures or increased costs in those periods.
- Net Profit Margin Analysis
- The net profit margin started negative in the initial quarter (-13.3%) but quickly turned positive and improved significantly, reaching over 12% by late 2021 and maintaining roughly that level through 2024. While margins remain relatively stable after the initial rise, a slight downward trend emerges in the final few quarters, with margins moving from around 12.7% to roughly 10.3%. This indicates tightening profitability despite growing revenue.
Overall, the data point to a company experiencing robust revenue and profit growth, accompanied by improving profitability ratios initially. Nevertheless, the more recent quarters reveal some softness in profit margins, suggesting attention may be needed to cost management or market conditions affecting earnings quality. The trends imply strong operational performance combined with emerging challenges in sustaining margin expansion.
Return on Equity (ROE)
SLB N.V., ROE 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
ROE = 100
× (Net income (loss) attributable to SLBQ3 2025
+ Net income (loss) attributable to SLBQ2 2025
+ Net income (loss) attributable to SLBQ1 2025
+ Net income (loss) attributable to SLBQ4 2024)
÷ Total SLB stockholders’ equity
= 100 × ( + + + )
÷ =
The analysis of the financial data over the observed periods reveals several key trends in net income, stockholders' equity, and return on equity (ROE) for SLB N.V.
- Net Income (Loss) Attributable to SLB
- Net income exhibits a generally positive and upward trend from 2021 through 2024, demonstrating growth and increasing profitability. Starting at 299 million USD in the first quarter of 2021, net income rises steadily, peaking around 1,186 million USD in the third quarter of 2024. However, in 2025 the figures show more volatility and a noticeable decline, with net income dropping to 739 million USD by the third quarter of 2025. This indicates a potential challenge or shift in business conditions affecting profitability in the most recent periods.
- Total SLB Stockholders’ Equity
- Stockholders’ equity shows a consistent growth trajectory from March 2021 through September 2024, increasing from 12,543 million USD to a peak of 21,511 million USD. This steady increase suggests strengthening financial stability and accumulation of shareholder value over this timeframe. However, a decline in equity is observed starting from December 2024 through mid-2025, with a decrease to 19,515 million USD by June 2025, followed by a recovery to 25,635 million USD in September 2025. This fluctuation indicates some variability in equity levels that could be attributed to changes in retained earnings, capital structure, or other comprehensive income components.
- Return on Equity (ROE)
- ROE underwent a significant improvement from negative -22.67% in March 2021 to a stable high range between approximately 20% and 21% throughout 2022, 2023, and most of 2024. This reflects enhanced effectiveness in utilizing equity to generate profits. The peak ROE appears around the first quarter of 2025 at 21.47%. Nevertheless, a decline follows during the subsequent quarters of 2025, dropping to 14.22% by September 2025. The initial negative ROE and subsequent strong recovery correspond with the rise in net income and equity over the long term, while the recent decrease in ROE likely mirrors the drop in net income and equity fluctuations observed in the latest periods.
In summary, the financial performance and position of SLB N.V. exhibited significant improvement from 2021 through most of 2024, marked by growing net income, increasing stockholders’ equity, and strong ROE values. However, the most recent quarters in 2025 indicate some stress with reduced profitability and a dip in equity, leading to a decline in ROE. These trends warrant further investigation to understand the underlying causes and to assess potential impacts on the company’s future financial health and operational performance.
Return on Assets (ROA)
SLB N.V., ROA 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
ROA = 100
× (Net income (loss) attributable to SLBQ3 2025
+ Net income (loss) attributable to SLBQ2 2025
+ Net income (loss) attributable to SLBQ1 2025
+ Net income (loss) attributable to SLBQ4 2024)
÷ Total assets
= 100 × ( + + + )
÷ =
The analysis of the quarterly financial data reveals several noteworthy trends regarding profitability, asset base, and return on assets (ROA) over the examined periods.
- Net Income (Loss) Attributable to SLB
-
Net income exhibits a generally upward trend from the beginning of the period, starting at US$299 million and rising to a peak exceeding US$1.1 billion in multiple quarters. The data shows fluctuations, with some quarters experiencing declines, such as in the later stages where income dips below US$800 million at times. Despite these variations, net income remains substantially higher than initial values, indicating overall growth and profitability improvement over time.
- Total Assets
-
Total assets reflect a modest upward trajectory across the quarters. Beginning around US$42 billion, the assets slightly fluctuate but trend upward, approaching approximately US$55 billion by the end of the series. This growth suggests ongoing expansion and investment in asset holdings, though some minor short-term contractions occur.
- Return on Assets (ROA)
-
ROA starts with a negative value, indicating unprofitable utilization of assets initially. However, it improves steadily into positive territory, rising from negative 6.76% to a high near 9.12%, demonstrating enhanced efficiency in generating profits from assets. ROA stabilizes around 8-9% for several quarters before experiencing a slight decline toward the end, falling to approximately 6.62%. This pattern indicates initial operational challenges followed by a phase of strong profitability and efficiency, with some recent moderation in returns.
In summary, the company shows considerable improvement in net income and asset growth, coupled with a significant recovery and strengthening in ROA. The mixed fluctuations in net income during later quarters and a mild reduction in ROA near the conclusion suggest some areas for potential operational focus to sustain and enhance profitability and asset utilization.