SLB N.V. (NYSE:SLB)

The liquidity position, as indicated by the observed ratios, demonstrates a generally improving trend from 2021 through 2024, followed by a slight pullback in 2025. The current ratio shows consistent gains, while the quick and cash ratios exhibit more moderate fluctuations.

Current Ratio

The current ratio increased from 1.22 in 2021 to 1.45 in 2024, representing a strengthening ability to cover short-term liabilities with short-term assets. However, a slight decrease to 1.33 was noted in 2025. This suggests a potential stabilization after a period of improvement, or a minor shift in the composition of current assets and liabilities.

Quick Ratio

The quick ratio, which excludes inventory from current assets, showed a modest increase from 0.82 in 2021 to 0.99 in 2024. This indicates an improvement in the ability to meet short-term obligations with the most liquid assets. The ratio then decreased to 0.88 in 2025, mirroring the trend observed in the current ratio and potentially indicating a similar cause.

Cash Ratio

The cash ratio, representing the ability to cover short-term liabilities with only cash and cash equivalents, fluctuated over the period. It decreased from 0.30 in 2021 to 0.24 in 2022, then recovered to 0.30 in 2023, increased to 0.36 in 2024, and finally decreased to 0.29 in 2025. This suggests a more dynamic management of cash reserves, potentially influenced by operational needs or investment activities. While the ratio remains relatively stable, the fluctuations indicate a less consistent immediate liquidity position compared to the current and quick ratios.

Overall, the company appears to have enhanced its liquidity position between 2021 and 2024. The slight declines observed in all three ratios in 2025 warrant further investigation to determine if this represents a temporary fluctuation or the beginning of a more significant trend.

The current ratio exhibited an overall positive trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. This indicates a generally improving ability to cover short-term obligations with short-term assets over the analyzed period, with a minor pullback in the final year.

Current Ratio Trend

The current ratio began at 1.22 in 2021 and increased to 1.25 in 2022, representing a modest improvement. Further gains were observed in 2023, reaching 1.32, and a more substantial increase to 1.45 in 2024. However, the ratio decreased to 1.33 in 2025.

The increase in the current ratio from 2021 to 2024 suggests strengthening short-term financial health. The decline in 2025, while not substantial, warrants further investigation to determine the underlying causes. This could be due to a faster growth rate in current liabilities compared to current assets, or a deliberate strategic shift in working capital management.

Underlying Components

Current assets increased consistently throughout the period, moving from 12,654 US$ in millions in 2021 to 19,513 US$ in millions in 2025. Current liabilities also increased, but at a slower pace than current assets until 2025, when they reached 14,721 US$ in millions, representing a more significant increase compared to the prior year.

The combination of increasing current assets and initially controlled current liability growth contributed to the improving current ratio. The accelerated growth in current liabilities in 2025 appears to be the primary driver of the ratio’s slight decrease, suggesting a potential area for monitoring in future periods.

The quick ratio exhibited a generally improving trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. Throughout the period, the ratio remained below one for the majority of the years, indicating a potential liquidity concern, though the gap narrowed considerably.

Quick Ratio Trend

The quick ratio began at 0.82 in 2021 and increased to 0.83 in 2022, representing minimal change. A more noticeable improvement occurred between 2022 and 2023, with the ratio rising to 0.88. The most significant increase was observed from 2023 to 2024, reaching 0.99. However, in 2025, the quick ratio decreased to 0.88, reversing some of the prior gains.

Underlying Components

Total quick assets demonstrated consistent growth throughout the period, increasing from US$8,454 million in 2021 to US$12,901 million in 2025. Current liabilities also increased overall, rising from US$10,359 million in 2021 to US$14,721 million in 2025. The increase in current liabilities was more pronounced than the increase in quick assets in 2025, contributing to the decline in the quick ratio during that year.

The improvement in the quick ratio from 2021 to 2024 suggests a strengthening short-term liquidity position. However, the decrease in 2025 warrants further investigation to determine the sustainability of this trend and the potential impact on the company’s ability to meet its short-term obligations. The continued presence of a ratio below one for most of the period suggests the company may rely on inventory sales or other financing sources to cover immediate liabilities.

The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then increasing, followed by a slight decline in the most recent year. This indicates a changing ability to meet current obligations with only the most liquid assets.

Cash Ratio Trend

The cash ratio began at 0.30 in 2021, decreased to 0.24 in 2022, and then recovered to 0.30 in 2023. A further increase to 0.36 was observed in 2024, representing the highest value in the observed period. However, the ratio decreased slightly to 0.29 in 2025.

Total cash assets demonstrated an initial decrease, followed by growth and a subsequent slight reduction. This movement in cash assets directly influences the cash ratio.

Cash Assets

Total cash assets decreased from US$3,139 million in 2021 to US$2,894 million in 2022. A significant increase to US$3,989 million was then recorded in 2023, continuing to US$4,669 million in 2024. The most recent year, 2025, saw a slight decrease to US$4,212 million.

Current liabilities generally increased throughout the period, which, when considered alongside the cash asset movements, provides context for the observed cash ratio fluctuations.

Current Liabilities

Current liabilities increased consistently from US$10,359 million in 2021 to US$14,721 million in 2025. The increases were US$1,659 million (2022), US$1,377 million (2023), US$584 million (2024), and US$1,910 million (2025).

The combination of fluctuating cash assets and consistently increasing current liabilities resulted in the observed pattern of the cash ratio. The peak in 2024 suggests a period of strong liquidity relative to short-term obligations, while the declines in 2022 and 2025 indicate a weakening of this position.