Stock Analysis on Net
Stock Analysis on Net

Schlumberger Ltd. (NYSE:SLB)

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Schlumberger Ltd., adjustments to financial statements

US$ in millions

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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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 47,957 43,135 41,511 42,434 56,312
Adjustment to Total Debt
Total debt (as reported) 11,965 12,226 14,195 16,886 15,294
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Operating lease liabilities (recognized in Accounts payable and accrued liabilities) 201 160 186 248 494
Add: Operating lease liabilities (recognized in Other Liabilities) 609 539 628 763 917
Total debt (adjusted) 12,775 12,925 15,009 17,897 16,705

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).

1, 2 Equal to total present value of future operating lease payments.

Schlumberger Ltd., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Schlumberger Ltd., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.69 0.65 0.55 0.56 0.58
Adjusted total asset turnover 0.69 0.65 0.55 0.56 0.58
Debt to Equity2
Reported debt to equity 0.59 0.69 0.95 1.40 0.64
Adjusted debt to equity 0.63 0.73 1.00 1.48 0.70
Return on Assets3 (ROA)
Reported ROA 8.76% 7.98% 4.53% -24.79% -18.00%
Adjusted ROA 8.76% 7.98% 4.53% -24.79% -18.00%

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).

1 See details »

2 See details »

3 See details »

Financial 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.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Schlumberger Ltd. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as 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

Adjusted Total Asset Turnover

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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)
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 Operating Leases
Selected Financial Data (US$ in millions)
Revenue 33,135 28,091 22,929 23,601 32,917
Adjusted total assets 47,957 43,135 41,511 42,434 56,312
Activity Ratio
Adjusted total asset turnover2 0.69 0.65 0.55 0.56 0.58

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 ÷ 47,957 = 0.69

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.

Adjusted Debt to Equity

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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)
Total debt 11,965 12,226 14,195 16,886 15,294
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Solvency Ratio
Debt to equity1 0.59 0.69 0.95 1.40 0.64
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 12,775 12,925 15,009 17,897 16,705
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Solvency Ratio
Adjusted debt to equity2 0.63 0.73 1.00 1.48 0.70

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 Debt to equity = Total debt ÷ Total SLB stockholders’ equity
= 11,965 ÷ 20,189 = 0.59

2 Adjusted debt to equity = Adjusted total debt ÷ Total SLB stockholders’ equity
= 12,775 ÷ 20,189 = 0.63

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Schlumberger Ltd. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

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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)
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 Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB 4,203 3,441 1,881 (10,518) (10,137)
Adjusted total assets 47,957 43,135 41,511 42,434 56,312
Profitability Ratio
Adjusted ROA2 8.76% 7.98% 4.53% -24.79% -18.00%

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

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