Schlumberger NV (SLB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.78% | 97.56% | 97.14% | 96.82% | 68.03% |
| Operating profit margin | 19.99% | 18.09% | 15.03% | 10.38% | 12.31% |
| Pretax margin | 15.97% | 15.23% | 10.39% | -48.96% | -32.34% |
| Net profit margin | 12.88% | 12.42% | 8.40% | -45.45% | -31.38% |
The profitability ratios of Schlumberger Ltd. indicate a generally improving trend over the past five years. The gross profit margin has shown steady improvement, increasing from 12.75% in 2019 to 19.81% in 2023. This suggests the company has been able to effectively manage its production costs and maintain a healthy level of gross profit relative to its revenue.
Similarly, the operating profit margin has steadily increased, reaching 16.56% in 2023 from 9.13% in 2019. This indicates that the company has been successful in managing its operating expenses and generating higher operating profits as a percentage of its revenue.
The pretax margin also demonstrates a positive trajectory, improving from negative margins in 2019 and 2020 to 15.94% in 2023. This suggests that the company has been able to turn around its pre-tax profitability and generate positive margins on its pre-tax income.
Finally, the net profit margin has shown significant improvement, increasing from -30.80% in 2019 to 12.68% in 2023. This indicates that the company has been able to effectively control its costs and generate healthier profits after accounting for taxes and other expenses.
Overall, the profitability ratios of Schlumberger Ltd. reflect an upward trend, indicating improved efficiency in cost management and a stronger ability to generate profits from its operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.60% | 11.62% | 8.11% | 5.66% | 7.06% |
| Return on assets (ROA) | 8.76% | 7.98% | 4.53% | -24.79% | -18.00% |
| Return on total capital | 18.41% | 16.66% | 10.13% | -38.31% | -25.54% |
| Return on equity (ROE) | 20.82% | 19.46% | 12.54% | -87.13% | -42.66% |
Schlumberger Ltd.'s profitability ratios reflect its ability to generate profits from its assets and capital.
The operating return on assets (Operating ROA) has shown a consistent positive trend, increasing from 5.34% in 2019 to 11.44% in 2023. This suggests that the company's core operations have become more efficient in generating income from its assets over the years.
The return on assets (ROA) also exhibits an improving trend, with the ratio increasing from -24.79% in 2020 to 8.76% in 2023. While the negative ROA in 2020 was concerning, the subsequent recovery indicates an enhanced ability to generate profits relative to its total assets.
The return on total capital has shown a similar positive trend, increasing from 7.81% in 2019 to 17.71% in 2023. This suggests that the company has been able to generate a higher return for its capital providers over the years.
Furthermore, the return on equity (ROE) also demonstrates an improving trend, with the ratio increasing from -42.66% in 2019 to 20.82% in 2023. This indicates that the company has become more efficient in generating profits for its shareholders.
In summary, Schlumberger Ltd.'s profitability ratios have shown consistent improvement over the years, indicating enhanced efficiency in generating profits from its assets and capital.