Schlumberger NV (SLB)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.26 | 0.28 | 0.24 | 0.23 |
| Debt-to-capital ratio | 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 | 0.38 | 0.41 | 0.32 | 0.31 |
| Debt-to-equity ratio | 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 | 0.62 | 0.68 | 0.47 | 0.46 |
| Financial leverage ratio | 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 | 2.37 | 2.43 | 1.97 | 1.95 |
The solvency ratios of Schlumberger Ltd. provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has shown a slight decrease from 0.30 in June 2023 to 0.25 in December 2023, indicating improved asset coverage of debt.
Similarly, the debt-to-capital ratio, which reflects the extent of a company's financing that comes from debt, has exhibited a consistent declining trend from 0.46 in June 2022 to 0.37 in December 2023, suggesting a lower reliance on debt for capital funding.
The debt-to-equity ratio, a gauge of financial leverage, portrays a similar pattern, decreasing from 0.92 in March 2022 to 0.59 in December 2023, signaling a reduced dependency on equity to support the company's assets.
The financial leverage ratio, which indicates the proportion of the company's assets that are financed by debt, has depicted a decline from 2.73 in March 2022 to 2.38 in December 2023, further substantiating the trend of decreased reliance on debt for asset financing.
Overall, the declining trends across these solvency ratios indicate an improvement in Schlumberger Ltd.'s solvency position, as the company appears to be gradually reducing its reliance on debt to support its operations and asset base.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | -16.13 | -15.97 | 5.23 | 5.23 |
The interest coverage ratio of Schlumberger Ltd. shows the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a more favorable position for the company.
As per the provided data, Schlumberger Ltd.'s interest coverage has been on an upward trend from March 31, 2022 (6.22) to December 31, 2023 (14.13). This signifies an improvement in the company's ability to cover its interest expenses with its EBIT over the given period. The consistent increase in the interest coverage ratio reflects a strengthening financial position and a reduced risk of default on interest payments.
Schlumberger Ltd.'s interest coverage ratio of 14.13 as of December 31, 2023, suggests that the company earned 14.13 times the amount needed to cover its interest expense for that period. This indicates a robust ability to meet its interest obligations, which is a positive sign for the company's creditors and investors.
Overall, the trend of increasing interest coverage ratio signifies improved financial health and better ability to service debt for Schlumberger Ltd. over the analyzed period.