Financial Reporting Quality: Aggregate Accruals

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.

Balance-Sheet-Based Accruals Ratio
Cash-Flow-Statement-Based Accruals Ratio

Paying user area

Try for free

Schlumberger Ltd. pages available for free this week:

The data is hidden behind: . Unhide it.

Get full access to the entire website from $10.42/mo, or
get 1-month access to Schlumberger Ltd. for $24.99.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Balance-Sheet-Based Accruals Ratio

Schlumberger Ltd., balance sheet computation of aggregate accruals

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Operating Assets
	Total assets
	Less: Cash
	Less: Short-term investments
	Operating assets
	Operating Liabilities
	Total liabilities
	Less: Short-term borrowings and current portion of long-term debt
	Less: Long-term debt, excluding current portion
	Operating liabilities

	Net operating assets¹
	Balance-sheet-based aggregate accruals²
	Financial Ratio
	Balance-sheet-based accruals ratio³
	Benchmarks
	Balance-Sheet-Based Accruals Ratio, Industry
	Energy

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 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= – =

² 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets₂₀₂₃ – Net operating assets₂₀₂₂
= – =

³ 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

Financial ratio	Description	The company
Balance-sheet-based accruals ratio	Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets.	Using the balance-sheet-based accruals ratio, Schlumberger Ltd. deteriorated earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Schlumberger Ltd., cash flow statement computation of aggregate accruals