Schlumberger NV (SLB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.23 | 0.25 | 0.32 | 0.38 |
| Debt-to-capital ratio | 0.34 | 0.35 | 0.37 | 0.47 | 0.57 |
| Debt-to-equity ratio | 0.52 | 0.54 | 0.60 | 0.89 | 1.33 |
| Financial leverage ratio | 2.32 | 2.38 | 2.44 | 2.77 | 3.52 |
Schlumberger NV's solvency ratios show a consistent improvement over the years from 2020 to 2024. The debt-to-assets ratio decreased from 0.38 in 2020 to 0.23 in 2024, indicating the company's ability to reduce its debt relative to its total assets.
Similarly, the debt-to-capital ratio also declined from 0.57 in 2020 to 0.34 in 2024, demonstrating a decreasing reliance on debt in its capital structure.
The debt-to-equity ratio followed a similar trend, decreasing from 1.33 in 2020 to 0.52 in 2024, showing a significant reduction in the proportion of debt financing relative to equity.
The financial leverage ratio, which measures the amount of debt used to finance the company's assets, decreased steadily from 3.52 in 2020 to 2.32 in 2024.
Overall, the improving trend in these solvency ratios for Schlumberger NV indicates a stronger financial position with lower debt levels and efficient utilization of capital over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.85 | 11.36 | 9.61 | 5.32 | -19.12 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In 2020, Schlumberger NV had an interest coverage ratio of -19.12, which indicates that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health. However, the ratio improved significantly in the following years. By the end of 2024, the interest coverage ratio had increased to 11.85, reflecting a strong improvement in the company's ability to meet its interest payments with its operating income.
Overall, the trend in Schlumberger NV's interest coverage ratio shows a positive trajectory, with the company enhancing its ability to manage its interest obligations over the years.