Schlumberger NV (SLB)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 5,210,000 | 4,220,000 | 2,327,000 | -11,330,000 | -10,448,000 |
| Revenue | US$ in thousands | 32,632,000 | 27,708,000 | 22,390,000 | 23,142,000 | 32,308,000 |
| Pretax margin | 15.97% | 15.23% | 10.39% | -48.96% | -32.34% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $5,210,000K ÷ $32,632,000K
= 15.97%
The pretax margin of Schlumberger Ltd. has shown a positive trend over the past five years, indicating the company's ability to generate profits before taking into account taxes and interest expenses. The pretax margin increased from 10.35% in 2021 to 15.20% in 2022 and further to 15.94% in 2023, reflecting the company's improving operational efficiency and cost management.
The significant improvement in pretax margin from negative values in 2020 and 2019 to positive percentages in 2021 onwards suggests a substantial turnaround in the company's financial performance. This may be attributed to strategic restructuring efforts, cost reduction initiatives, and better control over operating expenses.
The positive pretax margin indicates that Schlumberger Ltd. has been able to generate higher pre-tax profits relative to its total revenue, indicating enhanced profitability and potentially attractive investment prospects for stakeholders. However, it is important to monitor this metric over time to ensure sustained profitability.
Peer comparison
Dec 31, 2023