Schlumberger NV (SLB)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,241,000	723,000	677,000	641,000	736,000
Payables	US$ in thousands	4,230,000	4,613,000	3,921,000	3,205,000	2,937,000
Payables turnover		0.29	0.16	0.17	0.20	0.25

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,241,000K ÷ $4,230,000K
= 0.29

The payables turnover ratio measures how efficiently a company manages its accounts payables by analyzing how many times the company pays off its suppliers within a certain period.

For Schlumberger NV, the payables turnover has fluctuated over the past five years. In 2020, the payables turnover ratio was 0.25, indicating that the company paid off its suppliers approximately 0.25 times during the year. This ratio decreased to 0.20 in 2021, suggesting a slower rate of paying off suppliers.

In 2022, the payables turnover ratio further declined to 0.17, indicating a potential extension in the payment period to suppliers. This trend continued in 2023, with the ratio dropping to 0.16, which implies a slower turnover of payables.

However, there was a notable improvement in 2024, with the payables turnover ratio increasing to 0.29. This suggests that Schlumberger NV was more efficient in paying off its suppliers during that year.

Overall, fluctuations in the payables turnover ratio can provide insights into the company's liquidity management and supplier relationships over time. Further analysis would be needed to understand the reasons behind these fluctuations and their implications for the company's financial health.