Schlumberger NV (SLB)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,203,000 | 3,441,000 | 1,881,000 | -10,518,000 | -10,137,000 |
| Total assets | US$ in thousands | 47,957,000 | 43,135,000 | 41,511,000 | 42,434,000 | 56,312,000 |
| ROA | 8.76% | 7.98% | 4.53% | -24.79% | -18.00% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $4,203,000K ÷ $47,957,000K
= 8.76%
To conduct a comprehensive analysis of Schlumberger Ltd.'s return on assets (ROA), we will examine the trend of ROA over the past five years. ROA is a key financial ratio that measures a company's ability to generate profits from its assets.
In 2019, Schlumberger's ROA was -18.00%, indicating that the company experienced a significant decline and was not effectively utilizing its assets to generate profits. However, there was a notable improvement in 2020, with ROA increasing to -24.79%. While still negative, this suggests that the company's asset utilization improved during that period.
The subsequent years saw a positive turnaround in Schlumberger's ROA. By 2021, the ROA had improved to 4.53%, indicating a recovery in the company's ability to generate profits from its assets. This positive trend continued in 2022, with ROA further increasing to 7.98%.
The most recent data for 2023 shows a continued positive trajectory, with Schlumberger's ROA reaching 8.76%. This reflects the company's sustained improvement in effectively utilizing its assets to generate profits.
In conclusion, Schlumberger Ltd. has shown a steady improvement in its return on assets over the past five years, signaling enhanced efficiency in generating profits from its asset base. This positive trend indicates the company's strengthened operational performance and ability to generate higher returns relative to its asset base.
Peer comparison
Dec 31, 2023