Stock Analysis on Net

Schlumberger Ltd. (NYSE:SLB)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Schlumberger Ltd., ROIC calculation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 4,641 3,801 2,298 (11,275) (10,628)
Invested capital2 37,776 33,931 32,896 33,428 45,035
Performance Ratio
ROIC3 12.29% 11.20% 6.98% -33.73% -23.60%

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 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 4,641 ÷ 37,776 = 12.29%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Schlumberger Ltd. ROIC improved from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

Schlumberger Ltd., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 12.29% = 17.24% × 0.88 × 81.27%
Dec 31, 2022 11.20% = 16.75% × 0.83 × 80.77%
Dec 31, 2021 6.98% = 12.54% × 0.70 × 79.88%
Dec 31, 2020 -33.73% = -45.46% × 0.71 × 100.00%
Dec 31, 2019 -23.60% = -29.77% × 0.73 × 100.00%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Schlumberger Ltd., OPM calculation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 4,641 3,801 2,298 (11,275) (10,628)
Add: Cash operating taxes2 1,070 905 579 546 829
Net operating profit before taxes (NOPBT) 5,711 4,706 2,876 (10,729) (9,799)
 
Revenue 33,135 28,091 22,929 23,601 32,917
Profitability Ratio
OPM3 17.24% 16.75% 12.54% -45.46% -29.77%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 5,711 ÷ 33,135 = 17.24%

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Schlumberger Ltd. OPM improved from 2021 to 2022 and from 2022 to 2023.

Turnover of Capital (TO)

Schlumberger Ltd., TO calculation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 33,135 28,091 22,929 23,601 32,917
Invested capital1 37,776 33,931 32,896 33,428 45,035
Efficiency Ratio
TO2 0.88 0.83 0.70 0.71 0.73

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 Invested capital. See details »

2 2023 Calculation
TO = Revenue ÷ Invested capital
= 33,135 ÷ 37,776 = 0.88

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Schlumberger Ltd. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Schlumberger Ltd., CTR calculation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 4,641 3,801 2,298 (11,275) (10,628)
Add: Cash operating taxes2 1,070 905 579 546 829
Net operating profit before taxes (NOPBT) 5,711 4,706 2,876 (10,729) (9,799)
Tax Rate
CTR3 18.73% 19.23% 20.12%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,070 ÷ 5,711 = 18.73%

Tax rate Description The company
CTR Effective cash tax rate on operating income. Schlumberger Ltd. CTR decreased from 2021 to 2022 and from 2022 to 2023.