Schlumberger NV (SLB)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,523,000 | 5,011,000 | 3,365,000 | 2,401,000 | 3,978,000 |
| Total assets | US$ in thousands | 47,957,000 | 43,135,000 | 41,511,000 | 42,434,000 | 56,312,000 |
| Operating ROA | 13.60% | 11.62% | 8.11% | 5.66% | 7.06% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,523,000K ÷ $47,957,000K
= 13.60%
To analyze Schlumberger Ltd.'s operating return on assets (ROA), we can observe the trend in the operating ROA over the past five years. The operating ROA measures the company's ability to generate earnings from its operating assets.
From 2019 to 2023, Schlumberger's operating ROA fluctuated, starting at 5.34% in 2019, increasing to 6.66% in 2021, declining to 3.90% in 2020, and then notably increasing to 11.44% in 2023, demonstrating a volatile trend.
The significant increase in operating ROA from 2022 to 2023 indicates an improvement in the company's ability to generate operating earnings from its assets. This could be attributed to the company's operational efficiency, cost management, or an increase in operating income relative to its assets.
Overall, Schlumberger's increasing trend in operating ROA suggests an improvement in its operational efficiency and profitability in recent years. However, further analysis of the company's financial and operational performance would be necessary to provide a more comprehensive understanding of the factors driving these changes.
Peer comparison
Dec 31, 2023