Schlumberger NV (SLB)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,935,000 | 47,957,000 | 43,135,000 | 41,511,000 | 42,434,000 |
| Total stockholders’ equity | US$ in thousands | 21,130,000 | 20,189,000 | 17,685,000 | 15,004,000 | 12,071,000 |
| Financial leverage ratio | 2.32 | 2.38 | 2.44 | 2.77 | 3.52 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,935,000K ÷ $21,130,000K
= 2.32
The financial leverage ratio measures the extent to which a company uses debt to finance its operations compared to its equity. In the case of Schlumberger NV, the trend in the financial leverage ratio has been decreasing over the years, indicating a reduction in the company's reliance on debt to fund its activities.
As of December 31, 2020, Schlumberger NV had a financial leverage ratio of 3.52, suggesting that the company had a higher proportion of debt in its capital structure compared to equity. However, in the following years, we observe a declining trend in the financial leverage ratio, reaching 2.32 as of December 31, 2024. This indicates that the company has been able to reduce its debt levels relative to equity, which may result in lower financial risk and improved financial stability.
Overall, the decreasing financial leverage ratio of Schlumberger NV reflects a positive trend towards a more conservative capital structure, potentially enhancing the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024