Schlumberger NV (SLB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,713,000 | 4,710,000 | 2,866,000 | -10,767,000 | -9,839,000 |
| Long-term debt | US$ in thousands | 10,842,000 | 10,594,000 | 13,286,000 | 16,036,000 | 14,770,000 |
| Total stockholders’ equity | US$ in thousands | 20,189,000 | 17,685,000 | 15,004,000 | 12,071,000 | 23,760,000 |
| Return on total capital | 18.41% | 16.66% | 10.13% | -38.31% | -25.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,713,000K ÷ ($10,842,000K + $20,189,000K)
= 18.41%
The return on total capital for Schlumberger Ltd. has shown a positive trend over the past five years, indicating increasing efficiency in generating returns from the total capital employed. The ratio has improved from 7.81% in 2019 to 17.71% in 2023. This signifies the company's ability to generate profits from both its equity and debt capital. The consistent growth in return on total capital reflects positively on the company's operational effectiveness and strategic allocation of resources. Overall, this trend suggests that Schlumberger Ltd. has been successful in maximizing returns in relation to the total capital invested in the business.
Peer comparison
Dec 31, 2023