SLB N.V. (NYSE:SLB)

The analysis of the financial ratios and periods reveals several trends and fluctuations across different metrics over time.

Inventory Turnover

The inventory turnover ratio shows a generally stable pattern with minor fluctuations. From early 2021 to early 2023, it fluctuated around a range of approximately 5.2 to 6.1, indicating consistent efficiency in inventory management. There was an upward trend peaking near 6.59 in late 2024, followed by a decline towards mid-2025. This suggests seasonal or cyclical variations affecting inventory turnover efficiency over the periods.

Receivables Turnover

The receivables turnover ratio maintained relative steadiness with ratios hovering close to 4.0, with occasional minor deviations. Notably, the ratio dipped slightly in 2022 and early 2023 but rose again afterward, peaking around 4.53 in late 2024 before declining back below 4.0 by mid-2025. This pattern implies some variations in the rate at which receivables are collected, though the changes are moderate.

Working Capital Turnover

The working capital turnover ratio exhibited significant volatility. It ranged broadly from under 6.0 up to above 10.0 during the observed periods. Peaks were observed towards the end of 2021 and again in early 2025, indicating periods of increased operational efficiency in generating revenue from working capital. However, intermittent sharp declines suggest fluctuating capital management or revenue generation efficiency challenges at various points.

Average Inventory Processing Period

The average inventory processing period experienced slight variations, hovering around 60 to 70 days. Early 2021 saw processing periods near 64 days, which increased to nearly 70 days by mid-2022, suggesting somewhat slower inventory turnover during that time. Subsequently, a decreasing trend is evident, reaching lows near 55 days in late 2024 before rising again towards mid-2025. This indicates changing inventory holding periods potentially influenced by operational adjustments or market conditions.

Average Receivable Collection Period

The average receivable collection period mostly fluctuated between 80 and 95 days, showing a relatively consistent but somewhat prolonged collection cycle. An initial downward trend in late 2021 towards a shorter collection period was reversed with increases during 2022 and early 2023. Late 2024 shows the shortest collection periods, implying improved receivables management, before extending again by mid-2025.

Operating Cycle

The operating cycle, which aggregates the inventory processing and receivables collection periods, remained in a range around 140 to 160 days. Early 2021 featured operating cycles near 154 days, with increases noted in 2022 up to approximately 162 days, signaling slower overall operating efficiency. A decrease followed into late 2024 with the lowest cycle near 136 days, indicating improved operational throughput, but this was followed by a rise again to over 160 days in mid-2025.

Overall, the data indicates steady but fluctuating efficiency in managing inventory, receivables, and working capital over the observed quarters. There are periods of improved operational performance interspersed with intervals of slower turnover and collection cycles, which may reflect seasonal factors, market dynamics, or internal efficiency initiatives.

Cost of Revenue

The cost of revenue demonstrates an overall increasing trend over the presented periods. Starting at 4,504 million USD in the first quarter of 2021, it rises steadily with some fluctuations to reach 7,370 million USD by the third quarter of 2025. Notably, there is a significant jump from 6,592 million USD at the third quarter of 2023 to 7,193 million USD at the fourth quarter of 2023, followed by continued growth through 2024. A slight decline is observed in early 2025 before an uptick near the third quarter of 2025.

Inventories

Inventories show a general upward trajectory, increasing from 3,303 million USD at the beginning of 2021 to 5,321 million USD by the third quarter of 2025. While there are small periods of decline or stabilization, the overall pattern indicates accumulation of inventory over time. Some volatility is present, such as a dip around late 2022 and early 2023 followed by renewed growth. The inventory level tends to rise notably during 2024 and early 2025 stages.

Inventory Turnover Ratio

The inventory turnover ratio fluctuates within a range but exhibits an overall moderate increase over the timeframe. Starting at approximately 5.72 in early 2021, the ratio dips to around 5.19 mid-2022, then recovers and displays a rising trend through 2023 and into 2024, peaking at about 6.59 at the fourth quarter of 2024. Subsequently, the ratio declines again toward mid-2025, falling to approximately 5.36 by the third quarter of 2025. This pattern suggests periods of improved efficiency in inventory management, especially during 2023-2024, followed by some reduction in turnover speed in 2025.

Overall Insights

The simultaneous increase in both cost of revenue and inventories reflects growth in operational scale or market demand. The inventory turnover ratio's variation indicates changing efficiency in converting inventory into sales, with periods of stronger performance during 2023 and 2024. However, the late decline in turnover ratio may point to challenges in inventory management or sales velocity in 2025. The data suggests that while revenue-related costs and stock levels expanded, inventory management effectiveness saw mixed results, requiring attention to sustain operational efficiency in the later periods.

Revenue Trend

The revenue demonstrates a general upward trend over the examined periods, increasing from 5,223 million US dollars in March 2021 to a peak of 9,284 million US dollars in December 2024. Despite some fluctuations, including slight declines in certain quarters such as from December 2024 to March 2025, the overall pattern indicates growth. Notably, revenue experienced consistent quarterly increases through mid-2023 to the end of 2024, reflecting possible positive market conditions or business expansion during this timeframe.

Receivables Analysis

The balance of receivables less allowance for doubtful accounts also shows a steady increase from 5,269 million US dollars at the beginning of the observed period to 9,101 million US dollars at the end of the last quarter in 2025. This increase parallels revenue growth, suggesting that receivables are expanding in line with sales. Some quarter-to-quarter variability exists, but no significant drops are observed, indicating stable or growing credit sales and possibly consistent collection policies.

Receivables Turnover Ratio

The receivables turnover ratio fluctuates moderately around an average near 4.1 times per year. The ratio starts at 4.06 in March 2021, dips slightly in the middle periods, and shows intermittent increases, peaking at 4.53 in December 2024. A gradual decline is noted in the final quarters through September 2025, where the ratio decreases to 3.87. These fluctuations suggest variations in the efficiency of receivables collection, with higher ratios indicating faster collection periods and lower ratios potentially pointing to elongating payment terms or slower collections.

Overall Insights

The data indicates a robust growth in revenue accompanied by proportionate increases in receivables, implying expanding business activities and potentially consistent credit sales practices. The relatively stable receivables turnover ratio suggests that the company has maintained effective receivables management with only moderate variations in collection efficiency. However, the slight decline in turnover ratios toward the end of the period may warrant attention to accrual collection processes or credit policies to prevent potential liquidity constraints.

Working Capital Trend

The working capital exhibits fluctuations over the analyzed periods. Starting at 2934 million USD at the end of Q1 2021, it increases to a peak of 6108 million USD by mid-2024 before declining to 3559 million USD by Q1 2025. The movement shows periods of growth interrupted by sharp declines, especially notable after Q4 2024.

Revenue Trend

Revenue presents a generally upward trajectory from 5223 million USD in Q1 2021 to a high of 9284 million USD in Q4 2024. Some quarters show slight dips or plateaus, for example, a drop to 8490 million USD in Q1 2025, but the overall trend indicates growth in revenue over the time horizon.

Working Capital Turnover Ratio

The working capital turnover ratio shows variability with values ranging from as low as 5.75 to as high as 10.14 across the quarters. The ratio initially declines from 7.28 in Q1 2021 to 5.91 by Q3 2022, then rises significantly to 9.41 in Q4 2022. Subsequently, it decreases again before spiking to 10.14 in Q3 2025, indicating periods of differing efficiency in using working capital to generate revenue.

Relationship Between Metrics

There appears to be an inverse relationship between working capital levels and working capital turnover ratios at several points. For example, during quarters where working capital spikes (notably mid-2024), the turnover ratio tends to be relatively low, suggesting a decrease in efficiency. Conversely, high turnover ratios correlate with lower working capital levels, implying more efficient asset utilization.

Overall Insights

The data reflects cyclical patterns in working capital management alongside steady revenue growth. The fluctuations in the working capital turnover ratio emphasize variability in operational efficiency over the quarters. Attention to the causes behind the sharp shifts in working capital and turnover could improve financial stability and operational performance.

Inventory Turnover Ratio

The inventory turnover ratio exhibits moderate fluctuations over the observed periods. Initially, the ratio is relatively stable around 5.7 from March 2021 to December 2021, with a slight upward trend observed at the end of 2021. However, there is a noticeable decline during the first three quarters of 2022, reaching its lowest point near 5.19 in mid-2022. Subsequently, a recovery phase begins, with the ratio increasing steadily through 2023, peaking at approximately 6.59 toward the end of 2024. Toward the latest periods in 2025, a decline is once again evident, dropping to around 5.36 by September 2025. This pattern indicates a cyclical inventory management performance, with periods of efficient turnover followed by relative slowdowns.

Average Inventory Processing Period

The average inventory processing period inversely correlates with the inventory turnover ratio, reflecting the number of days inventory is held. Initially, the processing period remains in the low 60s in early 2021 but increases to a peak of 70 days in mid-2022. This peak corresponds with the lowest inventory turnover ratio noted in the same timeframe, implying slower inventory movement. After mid-2022, the average processing period trends downward, reaching a minimum of 55 days toward the end of 2024, consistent with the rising turnover ratio during that period. However, in 2025, the processing period shows an upward movement again to about 68 days, matching the observed decline in turnover ratio, signaling a deceleration in inventory processing efficiency.

Overall Insights

The data reflects a cyclical pattern in inventory management effectiveness over the analyzed quarters. The inverse relationship between inventory turnover ratio and the average processing period is clearly demonstrated, validating the consistency of these metrics. Periods of high turnover ratio coincide with shorter inventory holding times, suggesting improved operational efficiency and potentially stronger sales or demand conditions. Conversely, lower turnover ratios and extended processing periods may indicate inventory accumulation or slower sales, which could affect liquidity and operational costs. The trends suggest management has faced challenges in maintaining a consistently high turnover rate but has demonstrated the ability to improve inventory movement following periods of decline.

Receivables Turnover

The receivables turnover ratio exhibits fluctuations over the analyzed quarters, ranging from a low of approximately 3.87 to a high of 4.53. Initially, the ratio was around 4.06 at the end of Q1 2021, maintaining relative stability through 2021 and early 2022 with minor declines and recoveries observed. In the latter part of 2023 through 2024, there is a noticeable upward trend, peaking at 4.53 in Q4 2024, indicating improved efficiency in collecting receivables during this period. However, in the earliest part of 2025, the ratio declines again to around 3.87 by Q3 2025, suggesting a potential slowdown in receivables turnover.

Average Receivable Collection Period

Consistent with the receivables turnover trend, the average receivable collection period generally fluctuates between 81 and 94 days. The collection period decreased from 90 days at the end of Q1 2021 to as low as 81 days in Q4 2024, aligning with the peak in receivables turnover ratio, indicative of enhanced collection efficiency. Conversely, periods with longer collection times, such as 94 days in Q3 2025, correspond with lower turnover ratios, pointing to slower collections and potential liquidity considerations.

Overall Insights

The two metrics demonstrate an inverse relationship consistent with financial theory, where decreases in the average collection period reflect increases in receivables turnover, signifying improved collection management. The data shows a general trend of improving receivable efficiency through 2024, followed by some regression in 2025. Monitoring this pattern is important for working capital management and might warrant further investigation into operational or market factors influencing the recent downturn in turnover efficiency.

Average Inventory Processing Period

The average inventory processing period showed an initial stability around 63-64 days in 2021 Q1 to Q4, followed by an increase peaking at 70 days in mid-2022. Thereafter, a gradual decline occurred through 2023 and 2024, reaching a low of 55 days in 2024 Q4. However, in 2025, the period increased again, reaching 68 days by Q3. This fluctuation indicates inventory management cycles that lengthened in 2022 but then improved, suggesting enhanced efficiency before deteriorating somewhat again in 2025.

Average Receivable Collection Period

The receivable collection period remained relatively stable, fluctuating between 85 and 94 days over the entire timeframe. It started at 90 days in early 2021, increased slightly to around 92 days by late 2021 and into 2022, and showed mild variability without a clear long-term trend. In 2024, the period decreased slightly to around 81 days, signaling an improvement in collections, but lengthened again in 2025, returning near the previous higher levels close to 94 days. Overall, this indicates some inconsistency in receivables management but no significant sustained change.

Operating Cycle

The operating cycle mirrored the patterns observed in inventory processing and receivable collection periods. Starting near 154 days in early 2021, it showed an upward trend through 2022, reaching 162 days in mid-2022. Following this peak, there was a general decline through 2023 and much of 2024, reaching a low of 136 days in mid-2024. Late 2024 and early 2025 saw a rise again to 162 days by the third quarter of 2025. The operating cycle's fluctuations reflect the combined effects of inventory turnover and receivable collections, indicating periods of tightening and loosening working capital management.

Overall Insights

The data suggest a dynamic working capital environment with cycles of efficiency gains and losses. Inventory management showed notable improvements after 2022 but regressed somewhat by 2025. Receivable collections remained stable yet exhibited some volatility, indicating potential challenges in maintaining consistent collection policies. The operating cycle's changes underscore the interdependence of these components and imply that managing the balance between inventory and receivables remains a focus area for maintaining optimal liquidity and operational efficiency.