Common-Size Income Statement
Schlumberger Ltd., common-size consolidated income statement
Based on: 10-K (reporting date: 2024-12-31), 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).
- Revenue Composition
- The revenue distribution reveals a gradual shift from services to product sales over the five-year period. Services decreased from 70.05% in 2020 to 64.2% in 2024, while product sales increased from 29.95% to 35.8%, suggesting a strategic rebalancing toward product offerings.
- Cost Structure
- The cost of services consistently declined as a percentage of revenue, moving from -62.18% in 2020 to -49.18% in 2024, indicating improved cost efficiency or lower service delivery costs. Conversely, the cost of sales increased modestly from -26.8% to -30.26%, reflecting rising expenses associated with products. Overall, the total cost of revenue decreased from -88.98% to -79.44%, effectively widening the gross margin.
- Profitability Trends
- Gross margin showed a steady improvement, increasing from 11.02% in 2020 to 20.56% in 2024. This indicates growing profitability at the gross profit level, likely driven by the reduction in cost of services and the shifting revenue mix. Operating income turned positive from a significant loss of -46.62% in 2020 to maintain a stable range around 16% between 2021 and 2024, reflecting operational recovery and enhanced efficiency.
- Operating Expenses
- Research & engineering and general & administrative expenses both showed slight decreases relative to revenue, with research & engineering falling from -2.46% to -2.06%, and general & administrative expenses decreasing from -1.55% to -1.06%. Restructuring and merger-related costs appeared only in the later years, indicating periods of corporate restructuring or integration activities. These expenses, although present, constitute a minor fraction of revenue.
- Additional Gains and Losses
- There were various non-recurring gains and losses over the years, such as impairment charges of -53.63% in 2020, which were absent thereafter, indicating significant write-downs in that year. Gains on sale of Liberty shares and real estate, as well as other investment gains, sporadically contributed positively, while losses on swap transactions appeared in 2022. These items influenced income before taxes but did not impact recurring operational profitability trends significantly.
- Interest and Taxation
- Interest expense steadily declined from -2.39% to -1.41%, suggesting reduced debt or more favorable borrowing terms. Interest income and other income streams contributed marginally positive amounts. The tax expense turned from a benefit in 2020 to consistent expenses around -3.0% thereafter, in line with improved profitability.
- Net Income
- A marked turnaround is visible from a considerable net loss of -44.43% in 2020 to positive net incomes exceeding 12% from 2022 onwards. The net income attributable to the company mirrored this trend, stabilizing between roughly 12.3% and 12.7% in recent years. Noncontrolling interests showed minor negative contributions consistently.
- Overall Insights
- The data shows a clear recovery from a loss-making position in 2020 with strengthening operational performance and profitability. Reduction in costs, particularly in services, coupled with a strategic shift toward product sales, improved gross margins and operating income. Non-recurring impairments and restructuring charges significantly affected early-year results but were not recurring obstacles in subsequent years. The company achieved notable efficiency gains in operating expenses and interest costs, resulting in stable and positive net income margins from 2021 onward.