Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Schlumberger Ltd., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	14,084)	12,982)	12,990)	12,980)	16,042)
Customer relationships	1,887)	1,680)	1,681)	1,744)	3,779)
Technology/Technical know-how	1,516)	1,280)	1,264)	1,284)	2,498)
Tradenames	795)	767)	766)	767)	1,885)
Other	1,582)	1,657)	1,529)	1,488)	1,514)
Intangible assets, gross book value	5,780)	5,384)	5,240)	5,283)	9,676)
Accumulated amortization	(2,541)	(2,392)	(2,029)	(1,828)	(2,587)
Intangible assets, net book value	3,239)	2,992)	3,211)	3,455)	7,089)
Goodwill and intangible assets	17,323)	15,974)	16,201)	16,435)	23,131)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Schlumberger Ltd. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Intangible assets, net book value	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Schlumberger Ltd. intangible assets, net book value decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Schlumberger Ltd. goodwill and intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Schlumberger Ltd., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	47,957)	43,135)	41,511)	42,434)	56,312)
Less: Goodwill	14,084)	12,982)	12,990)	12,980)	16,042)
Total assets (adjusted)	33,873)	30,153)	28,521)	29,454)	40,270)
Adjustment to Total SLB Stockholders’ Equity
Total SLB stockholders’ equity (as reported)	20,189)	17,685)	15,004)	12,071)	23,760)
Less: Goodwill	14,084)	12,982)	12,990)	12,980)	16,042)
Total SLB stockholders’ equity (adjusted)	6,105)	4,703)	2,014)	(909)	7,718)
Adjustment to Net Income (loss) Attributable To SLB
Net income (loss) attributable to SLB (as reported)	4,203)	3,441)	1,881)	(10,518)	(10,137)
Add: Goodwill impairment	—)	—)	—)	3,070)	8,828)
Net income (loss) attributable to SLB (adjusted)	4,203)	3,441)	1,881)	(7,448)	(1,309)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Schlumberger Ltd., Financial Data: Reported vs. Adjusted

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Schlumberger Ltd., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	12.68%	12.25%	8.20%	-44.57%	-30.80%
Adjusted net profit margin	12.68%	12.25%	8.20%	-31.56%	-3.98%
Total Asset Turnover
Reported total asset turnover	0.69	0.65	0.55	0.56	0.58
Adjusted total asset turnover	0.98	0.93	0.80	0.80	0.82
Financial Leverage
Reported financial leverage	2.38	2.44	2.77	3.52	2.37
Adjusted financial leverage	5.55	6.41	14.16	—	5.22
Return on Equity (ROE)
Reported ROE	20.82%	19.46%	12.54%	-87.13%	-42.66%
Adjusted ROE	68.85%	73.17%	93.40%	—	-16.96%
Return on Assets (ROA)
Reported ROA	8.76%	7.98%	4.53%	-24.79%	-18.00%
Adjusted ROA	12.41%	11.41%	6.60%	-25.29%	-3.25%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Schlumberger Ltd. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Schlumberger Ltd. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Schlumberger Ltd. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Schlumberger Ltd. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Schlumberger Ltd. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Schlumberger Ltd., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(10,518)	(10,137)
Revenue	33,135)	28,091)	22,929)	23,601)	32,917)
Profitability Ratio
Net profit margin¹	12.68%	12.25%	8.20%	-44.57%	-30.80%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(7,448)	(1,309)
Revenue	33,135)	28,091)	22,929)	23,601)	32,917)
Profitability Ratio
Adjusted net profit margin²	12.68%	12.25%	8.20%	-31.56%	-3.98%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to SLB ÷ Revenue
= 100 × 4,203 ÷ 33,135 = 12.68%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to SLB ÷ Revenue
= 100 × 4,203 ÷ 33,135 = 12.68%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Schlumberger Ltd. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenue	33,135)	28,091)	22,929)	23,601)	32,917)
Total assets	47,957)	43,135)	41,511)	42,434)	56,312)
Activity Ratio
Total asset turnover¹	0.69	0.65	0.55	0.56	0.58
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	33,135)	28,091)	22,929)	23,601)	32,917)
Adjusted total assets	33,873)	30,153)	28,521)	29,454)	40,270)
Activity Ratio
Adjusted total asset turnover²	0.98	0.93	0.80	0.80	0.82

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 33,135 ÷ 47,957 = 0.69

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 33,135 ÷ 33,873 = 0.98

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Schlumberger Ltd. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	47,957)	43,135)	41,511)	42,434)	56,312)
Total SLB stockholders’ equity	20,189)	17,685)	15,004)	12,071)	23,760)
Solvency Ratio
Financial leverage¹	2.38	2.44	2.77	3.52	2.37
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	33,873)	30,153)	28,521)	29,454)	40,270)
Adjusted total SLB stockholders’ equity	6,105)	4,703)	2,014)	(909)	7,718)
Solvency Ratio
Adjusted financial leverage²	5.55	6.41	14.16	—	5.22

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total SLB stockholders’ equity
= 47,957 ÷ 20,189 = 2.38

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total SLB stockholders’ equity
= 33,873 ÷ 6,105 = 5.55

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Schlumberger Ltd. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(10,518)	(10,137)
Total SLB stockholders’ equity	20,189)	17,685)	15,004)	12,071)	23,760)
Profitability Ratio
ROE¹	20.82%	19.46%	12.54%	-87.13%	-42.66%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(7,448)	(1,309)
Adjusted total SLB stockholders’ equity	6,105)	4,703)	2,014)	(909)	7,718)
Profitability Ratio
Adjusted ROE²	68.85%	73.17%	93.40%	—	-16.96%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to SLB ÷ Total SLB stockholders’ equity
= 100 × 4,203 ÷ 20,189 = 20.82%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to SLB ÷ Adjusted total SLB stockholders’ equity
= 100 × 4,203 ÷ 6,105 = 68.85%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Schlumberger Ltd. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(10,518)	(10,137)
Total assets	47,957)	43,135)	41,511)	42,434)	56,312)
Profitability Ratio
ROA¹	8.76%	7.98%	4.53%	-24.79%	-18.00%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to SLB	4,203)	3,441)	1,881)	(7,448)	(1,309)
Adjusted total assets	33,873)	30,153)	28,521)	29,454)	40,270)
Profitability Ratio
Adjusted ROA²	12.41%	11.41%	6.60%	-25.29%	-3.25%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to SLB ÷ Total assets
= 100 × 4,203 ÷ 47,957 = 8.76%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to SLB ÷ Adjusted total assets
= 100 × 4,203 ÷ 33,873 = 12.41%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Schlumberger Ltd. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Schlumberger Ltd. (NYSE:SLB)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Schlumberger Ltd., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Schlumberger Ltd., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)