Schlumberger NV (SLB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 723,000 | 677,000 | 641,000 | 736,000 | 10,330,000 |
| Payables | US$ in thousands | 4,613,000 | 3,921,000 | 3,205,000 | 2,937,000 | 4,790,000 |
| Payables turnover | 0.16 | 0.17 | 0.20 | 0.25 | 2.16 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $723,000K ÷ $4,613,000K
= 0.16
The payables turnover ratio for Schlumberger Ltd. has shown a declining trend over the past five years. The ratio decreased from 7.15 in 2020 to 5.76 in 2023. This indicates that the company's ability to efficiently manage its trade payables has weakened over the period.
A decreasing payables turnover ratio could suggest a slowdown in payment to suppliers or an increase in accounts payable relative to purchases. It may also imply potential liquidity issues or strained relationships with suppliers. However, it's important to note that a lower ratio may also be a result of negotiation advantages, longer payment terms, or strategic cash management.
Further analysis of the company's financial and operational activities, as well as comparison with industry benchmarks, would provide a more comprehensive understanding of the implications of the declining payables turnover ratio for Schlumberger Ltd.
Peer comparison
Dec 31, 2023