Schlumberger NV (SLB)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.24 | 0.25 | 0.22 | 0.23 | 0.24 | 0.25 | 0.24 | 0.25 | 0.28 | 0.30 | 0.31 | 0.32 | 0.35 | 0.38 | 0.38 | 0.38 | 0.37 | 0.11 | 0.32 |
| Debt-to-capital ratio | 0.34 | 0.36 | 0.37 | 0.34 | 0.35 | 0.37 | 0.38 | 0.37 | 0.37 | 0.42 | 0.44 | 0.46 | 0.47 | 0.52 | 0.55 | 0.56 | 0.57 | 0.58 | 0.29 | 0.50 |
| Debt-to-equity ratio | 0.52 | 0.55 | 0.58 | 0.52 | 0.54 | 0.58 | 0.61 | 0.59 | 0.60 | 0.72 | 0.79 | 0.86 | 0.89 | 1.08 | 1.23 | 1.26 | 1.33 | 1.38 | 0.42 | 0.99 |
| Financial leverage ratio | 2.32 | 2.31 | 2.34 | 2.31 | 2.38 | 2.36 | 2.41 | 2.43 | 2.44 | 2.56 | 2.62 | 2.73 | 2.77 | 3.07 | 3.21 | 3.35 | 3.52 | 3.69 | 3.71 | 3.12 |
The solvency ratios of Schlumberger NV, based on the provided data, indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of a company's assets that are financed through debt. Schlumberger NV has shown a decreasing trend in its debt-to-assets ratio from 0.32 as of March 31, 2020, to 0.23 as of December 31, 2024. A lower debt-to-assets ratio generally indicates a lower risk of insolvency.
2. Debt-to-capital ratio: This ratio reflects the percentage of a company's capital that is contributed by debt. Schlumberger NV has experienced a decline in its debt-to-capital ratio from 0.50 on March 31, 2020, to 0.34 on December 31, 2024. A decreasing debt-to-capital ratio implies a reduced dependency on debt financing, which can enhance the company's financial stability.
3. Debt-to-equity ratio: This ratio measures the proportion of a company's financing that comes from debt compared to equity. Schlumberger NV has demonstrated a downward trend in its debt-to-equity ratio from 0.99 on March 31, 2020, to 0.52 on December 31, 2024. A decreasing debt-to-equity ratio signifies a decreasing reliance on debt and a strengthening equity position.
4. Financial leverage ratio: This ratio indicates the extent to which a company utilizes debt to finance its operations. Schlumberger NV's financial leverage ratio has shown a decreasing trend from 3.12 on March 31, 2020, to 2.32 on December 31, 2024. A declining financial leverage ratio suggests a reduced risk of financial distress and an improved ability to cover interest expenses.
Overall, based on the solvency ratios, Schlumberger NV has exhibited improvements in its financial health and reduction in its reliance on debt over the years, indicating enhanced solvency and a stronger financial position.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.85 | 11.93 | 11.90 | 11.79 | 11.36 | 11.41 | 11.02 | 10.80 | 9.61 | 8.19 | 7.21 | 5.91 | 5.32 | 4.75 | 3.35 | -4.09 | -19.16 | -19.09 | -38.64 | -30.79 |
The interest coverage ratio, calculated as earnings before interest and taxes (EBIT) divided by interest expense, provides insight into a company's ability to pay interest expenses on its outstanding debt. Negative values indicate that the company's earnings are not sufficient to cover its interest obligations.
Analyzing Schlumberger NV's interest coverage over time reveals a significant improvement in its ability to cover interest expenses. The ratio was highly negative in the first half of 2021, indicating financial strain. However, starting from the second half of 2021, the interest coverage turned positive, reflecting a better financial position.
The interest coverage ratio continued to increase steadily throughout 2022 and 2023, reaching double-digit values by the end of 2023. This upward trend demonstrates Schlumberger NV's strengthening ability to meet its interest payment obligations.
As of December 31, 2024, Schlumberger NV's interest coverage ratio stands at 11.85, indicating that the company's earnings are almost 12 times higher than its interest expenses. This reflects a robust financial position and a healthy ability to service its debt.
Overall, the trend of increasing interest coverage ratios for Schlumberger NV suggests improving financial stability and a reduced risk of defaulting on interest payments in the future.