Schlumberger NV (SLB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,066,000 | 5,713,000 | 4,710,000 | 2,866,000 | -10,767,000 |
| Long-term debt | US$ in thousands | 11,023,000 | 10,842,000 | 10,594,000 | 13,286,000 | 16,036,000 |
| Total stockholders’ equity | US$ in thousands | 21,130,000 | 20,189,000 | 17,685,000 | 15,004,000 | 12,071,000 |
| Return on total capital | 18.87% | 18.41% | 16.66% | 10.13% | -38.31% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,066,000K ÷ ($11,023,000K + $21,130,000K)
= 18.87%
Schlumberger NV's return on total capital has shown a significant improvement over the years, starting at a negative rate of -38.31% in December 2020 and gradually increasing to 10.13% in December 2021, 16.66% in December 2022, 18.41% in December 2023, and reaching 18.87% in December 2024.
The increasing trend in return on total capital indicates that Schlumberger NV has been able to generate higher returns on the capital employed in its operations. This improvement suggests that the company's profitability and efficiency in generating returns from its invested capital have strengthened over these years.
A positive return on total capital is essential for a company's financial health, as it reflects its ability to generate profit from all forms of capital, including both equity and debt. Schlumberger NV's consistent improvement in return on total capital is a positive sign and indicates that the company is effectively utilizing its resources to create value for its stakeholders.
Peer comparison
Dec 31, 2024