Schlumberger NV (SLB)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	36,289,000	32,632,000	27,708,000	22,390,000	23,142,000
Total current assets	US$ in thousands	18,570,000	17,718,000	15,003,000	12,654,000	12,919,000
Total current liabilities	US$ in thousands	12,811,000	13,395,000	12,018,000	10,359,000	10,491,000
Working capital turnover		6.30	7.55	9.28	9.76	9.53

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $36,289,000K ÷ ($18,570,000K – $12,811,000K)
= 6.30

Working capital turnover is a crucial financial ratio that measures how efficiently a company is utilizing its working capital to generate revenue. In the case of Schlumberger NV, the working capital turnover has shown a slight fluctuation over the past five years.

In December 31, 2020, the working capital turnover was recorded at 9.53, indicating that for every dollar of working capital invested, the company generated $9.53 of revenue. This ratio increased to 9.76 by December 31, 2021, suggesting an improvement in efficiency.

However, in the subsequent years, the working capital turnover decreased to 9.28 by December 31, 2022, 7.55 by December 31, 2023, and further dropped to 6.30 by December 31, 2024. These declines could indicate potential inefficiencies in managing working capital to generate revenue.

Overall, while Schlumberger NV has maintained a relatively high working capital turnover in recent years, the downward trend raises concerns about the company's ability to efficiently use its working capital to drive revenue generation. Further analysis of the company's working capital management practices and operational efficiency may be warranted to address potential inefficiencies and optimize performance.