Schlumberger NV (SLB)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.25 | 0.32 | 0.38 | 0.26 |
| Debt-to-capital ratio | 0.35 | 0.37 | 0.47 | 0.57 | 0.38 |
| Debt-to-equity ratio | 0.54 | 0.60 | 0.89 | 1.33 | 0.62 |
| Financial leverage ratio | 2.38 | 2.44 | 2.77 | 3.52 | 2.37 |
The solvency ratios of Schlumberger Ltd. indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.
The debt-to-assets ratio has shown a declining trend over the past five years, from 0.40 in 2019 to 0.25 in 2023. This indicates that the proportion of the company's assets financed by debt has decreased, which is generally favorable for solvency.
Similarly, the debt-to-capital and debt-to-equity ratios have also displayed a declining trend, signaling a reduced reliance on debt and improved solvency position. The decrease in these ratios suggests that the company has been able to decrease its debt levels relative to its capital and equity, which is a positive indicator for creditors and investors.
The financial leverage ratio has also decreased from 3.52 in 2020 to 2.38 in 2023, demonstrating a reduction in the company's reliance on debt to finance its assets. This trend reflects positively on the company's long-term solvency and financial stability.
In conclusion, the declining trend in Schlumberger Ltd.'s solvency ratios over the past five years indicates an improved ability to meet long-term financial obligations and a reduced reliance on debt for financing its operations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 11.36 | 9.61 | 5.32 | -19.12 | -16.16 |
The interest coverage ratio of Schlumberger Ltd. has shown a consistent improvement over the past five years. The ratio increased from 5.37 in 2019 to 14.13 in 2023, indicating the company's ability to meet its interest payment obligations through its earnings. This upward trend suggests an improvement in the company's financial stability and ability to service its debt. It is important to note that a higher interest coverage ratio signifies a strong ability to cover interest expenses, reflecting positively on the company's financial health and risk management. Overall, the increasing trend in the interest coverage ratio reflects Schlumberger Ltd.'s improving capacity to meet its interest obligations.