Schlumberger NV (SLB)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 20,189,000 | 17,685,000 | 15,004,000 | 12,071,000 | 23,760,000 |
| ROE | 20.82% | 19.46% | 12.54% | -87.13% | -42.66% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,203,000K ÷ $20,189,000K
= 20.82%
The return on equity (ROE) for Schlumberger Ltd. has shown a positive trend over the last five years. In 2023, the ROE stood at 20.82%, reflecting an improvement from the previous year's 19.46%. This indicates that the company generated a profit of $20.82 for every dollar of shareholder equity, representing a healthy return for investors.
The significant increase in ROE from 2021 to 2022 suggests that the company effectively utilized its equity to generate higher profits. However, it is important to note that the ROE was negative in 2020 and 2019, indicating that the company had incurred net losses during those years in relation to its equity.
Overall, the recent positive trend in ROE indicates an improved profitability and efficiency in the utilization of shareholder equity, which may positively influence investor confidence and the company's valuation. However, further analysis of the factors driving the changes in ROE over the years would provide a more comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023