Schlumberger NV (SLB)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.45 | 1.48 | 1.49 | 1.37 | 1.32 | 1.36 | 1.33 | 1.26 | 1.25 | 1.40 | 1.35 | 1.24 | 1.22 | 1.27 | 1.37 | 1.30 | 1.23 | 1.22 | 1.23 | 1.23 |
| Quick ratio | 0.99 | 1.00 | 1.02 | 0.91 | 0.88 | 0.94 | 0.89 | 0.82 | 0.80 | 0.92 | 0.86 | 0.78 | 0.82 | 0.85 | 0.91 | 0.83 | 0.79 | 0.81 | 0.81 | 0.82 |
| Cash ratio | 0.36 | 0.35 | 0.32 | 0.27 | 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 |
Schlumberger NV's current ratio has displayed some fluctuations over the past few years, ranging from 1.22 to 1.49. The current ratio measures the company's ability to meet its short-term obligations with its current assets. The company's current ratio generally stayed above 1, indicating that Schlumberger has been able to cover its current liabilities with its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown variability, ranging from 0.78 to 1.02. The quick ratio suggests how well the company can meet its short-term liabilities without relying on the sale of inventory. Schlumberger's quick ratio has generally remained below 1, indicating that the company may have some difficulty meeting its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio, has fluctuated between 0.20 and 0.36. This ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. Schlumberger's cash ratio indicates that the company's ability to meet its short-term obligations using only cash on hand has varied over the years.
Overall, while Schlumberger NV has shown some fluctuations in its liquidity ratios, the company has generally maintained a current ratio above 1, suggesting a reasonable ability to meet its short-term obligations. However, the lower quick ratio and cash ratio values indicate a potential challenge in meeting short-term liabilities without relying on inventory or other current assets.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 161.36 | 1,729.12 | 1,919.32 | 2,248.45 | -26.72 | 2,457.66 | 2,447.94 | 2,455.04 | 165.07 | 2,294.42 | 2,248.74 | 2,159.00 | 124.80 | 89.58 | 92.07 | 91.97 | 281.45 | 419.96 | 410.05 | 462.48 |
The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Analyzing the data provided for Schlumberger NV, we can observe significant fluctuations in the cash conversion cycle over the reported periods.
From March 31, 2020, to December 31, 2021, the cash conversion cycle decreased steadily, indicating improvements in managing inventory, accounts receivable, and accounts payable. However, in the following periods up to March 31, 2023, there were abrupt spikes in the cash conversion cycle, indicating challenges in efficiently converting investments into cash flows.
The negative cash conversion cycle reported on December 31, 2023, suggests that Schlumberger NV managed to collect cash from customers before paying suppliers, potentially leading to a strong financial position during that period. Subsequently, the cash conversion cycle increased but remained relatively stable from March 31, 2024, to December 31, 2024, potentially indicating a more balanced approach to managing working capital.
Overall, the trends in Schlumberger NV's cash conversion cycle reflect varying efficiencies in managing cash flow from operating activities, inventory turnover, and accounts receivable and payable, with the company experiencing both improvements and challenges in different periods. Stakeholders may need to closely monitor these trends to assess the company's liquidity and operational efficiency.