Schlumberger NV (SLB)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	2,900,000	2,488,000	1,930,000	1,501,000	1,655,000	2,180,000	1,893,000	1,600,000	1,757,000	1,569,000	1,439,000	1,268,000	844,000	1,219,000	1,462,000	1,375,000	1,137,000	1,183,000	1,466,000	1,230,000
Short-term investments	US$ in thousands	1,089,000	1,247,000	1,264,000	1,003,000	1,239,000	1,429,000	923,000	1,049,000	1,382,000	1,373,000	1,243,000	1,642,000	2,162,000	2,618,000	2,127,000	1,969,000	1,030,000	1,109,000	882,000	925,000
Total current liabilities	US$ in thousands	13,395,000	12,528,000	12,163,000	12,252,000	12,018,000	11,134,000	10,583,000	10,696,000	10,359,000	9,735,000	8,784,000	9,873,000	10,491,000	11,651,000	11,665,000	13,262,000	13,098,000	12,483,000	11,773,000	11,697,000
Cash ratio		0.30	0.30	0.26	0.20	0.24	0.32	0.27	0.25	0.30	0.30	0.31	0.29	0.29	0.33	0.31	0.25	0.17	0.18	0.20	0.18

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,900,000K + $1,089,000K) ÷ $13,395,000K
= 0.30

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. It is calculated by dividing a company's cash and cash equivalents by its current liabilities.

Schlumberger Ltd.'s cash ratio has exhibited fluctuations over the recent quarters, ranging from 0.29 to 0.43. The company's cash ratio was at its lowest in the first quarter of 2023 at 0.29, indicating a relatively lower level of available cash to cover short-term obligations. However, it increased to 0.41 by the end of the year, suggesting an improvement in the company's ability to meet its short-term obligations with its available cash and cash equivalents.

The fluctuations in the cash ratio may be attributed to changes in the company's cash position and short-term liabilities over the quarters. It is important to note that while a higher cash ratio signifies a stronger ability to cover current liabilities with cash, an excessively high cash ratio may also indicate an inefficient use of resources.

Overall, Schlumberger Ltd.'s cash ratio reflects variations in its liquidity position and its ability to meet short-term obligations using its available cash and cash equivalents. However, it is essential to consider other liquidity and solvency measures in conjunction with the cash ratio for a comprehensive assessment of the company's financial health.