Schlumberger NV (SLB)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		0.54	0.60	0.89	1.33	0.62

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,842,000K ÷ $20,189,000K
= 0.54

The debt-to-equity ratio indicates the proportion of a company's financing that is in the form of debt versus equity. A lower ratio is generally considered favorable as it suggests lower financial risk and greater financial stability.

Looking at the trend in Schlumberger Ltd.'s debt-to-equity ratio over the past five years, it is evident that there has been a decline in the ratio from 2019 to 2023. The ratio decreased from 0.64 in 2019 to 0.59 in 2023. This suggests that the company has reduced its reliance on debt as a source of financing in comparison to equity. This declining trend may indicate a strengthening financial position and reduced risk of financial distress.

Additionally, the decrease in the debt-to-equity ratio may imply that the company has achieved better control over its leverage, which could potentially lead to increased investor confidence and improved financial performance. However, it is important to note that a low debt-to-equity ratio may also indicate underutilization of leverage, which could limit the company's capacity for growth and investment opportunities.

Overall, Schlumberger Ltd.'s decreasing trend in the debt-to-equity ratio from 2019 to 2023 reflects a positive shift towards a more balanced capital structure, potentially enhancing its long-term financial stability and flexibility in funding future growth initiatives.