SLB N.V. (NYSE:SLB)

The liquidity position, as indicated by the observed ratios, demonstrates a generally stable trend with some fluctuations over the analyzed period. The current, quick, and cash ratios all exhibit cyclical patterns, suggesting responsiveness to underlying operational and financial activities. Overall, the company maintains a reasonable level of short-term solvency throughout the period.

Current Ratio

The current ratio experienced an initial increase from 1.24 in March 2022 to a peak of 1.40 in September 2022, before declining to 1.25 by December 2022. A subsequent period of relative stability followed, with values ranging between 1.26 and 1.37 through March 2024. A slight increase to 1.49 in June 2024 was observed, followed by a gradual decrease to 1.33 in December 2025. This suggests a generally healthy ability to cover short-term liabilities with short-term assets, with some quarterly variations.

Quick Ratio

The quick ratio mirrors the trend of the current ratio, increasing from 0.78 in March 2022 to 0.92 in September 2022, and then decreasing to 0.83 by December 2022. The ratio then showed improvement, peaking at 1.02 in June 2024, before settling around 0.88-0.99 through December 2025. The quick ratio consistently remains below the current ratio, indicating that inventory constitutes a significant portion of current assets. The improvement in the quick ratio suggests an increasing ability to meet short-term obligations with the most liquid assets.

Cash Ratio

The cash ratio demonstrates the most conservative measure of liquidity. It increased from 0.25 in March 2022 to 0.32 in September 2022, then decreased to 0.24 by December 2022. The ratio fluctuated between 0.20 and 0.36 over the subsequent period, with a slight increase to 0.29 in December 2025. This indicates a consistent, though relatively low, ability to cover immediate liabilities with cash and cash equivalents. The cash ratio’s lower values compared to the current and quick ratios highlight a reliance on accounts receivable and inventory for short-term liquidity.

In summary, the observed liquidity ratios suggest a company capable of meeting its short-term obligations. The cyclical patterns observed in all three ratios warrant continued monitoring to understand the drivers behind these fluctuations and to ensure sustained financial health.

The current ratio exhibited fluctuations over the analyzed period, generally indicating a healthy, though varying, short-term liquidity position. An initial upward trend is observed from March 31, 2022, to September 30, 2022, followed by a period of relative stability and then a decline, before recovering and stabilizing again towards the end of the period.

Overall Trend

The current ratio began at 1.24 in March 2022 and increased to a peak of 1.40 in September 2022. A subsequent decrease brought the ratio down to 1.25 by December 2022. The ratio then showed a slight increase to 1.26 in March 2023, followed by a rise to 1.36 in September 2023. A dip to 1.32 occurred in December 2023, before increasing to 1.49 in June 2024. The ratio remained relatively stable at 1.48 and 1.45 for the following two quarters, then decreased to 1.24 in March 2025. A slight recovery to 1.31 in June 2025 was followed by a further increase to 1.39 in September 2025, before settling at 1.33 in December 2025.

Peak and Trough Values

The highest recorded current ratio was 1.49, achieved in June 2024. The lowest value was 1.24, recorded both in March 2022 and March 2025. The difference between the peak and trough values suggests a range of liquidity fluctuation over the period.

Recent Performance

In the most recent quarters, the current ratio demonstrates a slight downward trend from June 2024 to December 2025, moving from 1.49 to 1.33. While still above 1.0, this decrease warrants monitoring to ensure continued short-term solvency.

Underlying Components

The fluctuations in the current ratio correlate with changes in both current assets and current liabilities. Increases in the ratio generally coincide with faster growth in current assets compared to current liabilities, while decreases suggest the opposite. The increase in current liabilities observed in the latter part of the period appears to be a contributing factor to the recent decline in the current ratio.

Overall, the current ratio generally indicates a satisfactory ability to meet short-term obligations. However, the recent downward trend and the increase in current liabilities suggest a need for continued monitoring of liquidity management.

The quick ratio exhibits fluctuations over the observed period, generally indicating a consistent, though varying, ability to meet short-term obligations with highly liquid assets. An initial upward trend is followed by periods of relative stability and decline, with a recent stabilization.

Overall Trend

From March 31, 2022, to December 31, 2022, the quick ratio increased from 0.78 to 0.83, with a peak of 0.92 in September 2022. This suggests an improving short-term liquidity position during this timeframe. A subsequent period from March 31, 2023, to December 31, 2023, shows a slight decline, fluctuating between 0.82 and 0.88. The ratio then increased to 1.02 by March 31, 2024, before stabilizing around 0.99-1.00 for the next two quarters. The most recent quarters show a slight decrease to 0.88 by December 31, 2025.

Peak and Trough Values

The highest recorded quick ratio was 1.02 as of March 31, 2024. The lowest recorded quick ratio was 0.78 as of March 31, 2022. This represents a range of 0.24 over the analyzed period.

Recent Performance

The quick ratio has remained relatively stable in the most recent four quarters, fluctuating between 0.88 and 1.02. This suggests a consistent, albeit moderate, level of short-term liquidity. The slight decline in the final quarter indicates a potential need for monitoring, though it remains within an acceptable range.

Asset and Liability Relationship

Total quick assets generally increased over the period, moving from US$8,362 million to US$12,901 million. However, current liabilities also increased, from US$10,696 million to US$14,721 million. The interplay between these two figures dictates the quick ratio’s movement. The period of ratio improvement coincided with a faster growth in quick assets relative to current liabilities, while the periods of decline saw current liabilities growing at a similar or faster rate than quick assets.

In conclusion, the quick ratio demonstrates a generally healthy liquidity position, with some fluctuations influenced by the relative growth of quick assets and current liabilities. The recent stabilization suggests a consistent short-term financial standing, although continued monitoring is advisable.

The cash ratio for the analyzed period demonstrates fluctuations, generally remaining within a range of 0.20 to 0.36. An initial increase is observed from March 2022 to September 2022, followed by a decline at the end of the year. Subsequent quarters show variability, with a peak in December 2024 and a subsequent decrease in the following quarters.

Overall Trend

The cash ratio exhibits a generally stable, yet fluctuating pattern over the observed timeframe. While there isn't a consistently strong upward or downward trend, the ratio generally improved from 2022 to 2024, before stabilizing and showing slight declines in the most recent quarters.

Short-Term Fluctuations (2022-2023)

From March 2022 through December 2022, the cash ratio increased from 0.25 to 0.32, before decreasing to 0.24. The first half of 2023 saw a recovery to 0.26, followed by a further increase to 0.30 by September 2023. The ratio remained stable at 0.30 in December 2023.

Recent Performance (2024-2025)

The cash ratio experienced an increase in the first half of 2024, reaching 0.32 in March and 0.35 in June, peaking at 0.36 in September 2024. The ratio remained relatively stable at 0.36 in December 2024. A slight decline is then observed in the first half of 2025, falling to 0.26 in March and 0.27 in June. The ratio remained at 0.26 in September 2025, before increasing slightly to 0.29 in December 2025.

Underlying Components

Total cash assets generally increased over the period, although with some quarterly variations. Current liabilities consistently remained significantly higher than total cash assets, and also exhibited quarterly fluctuations, contributing to the observed changes in the cash ratio. The increase in current liabilities in the later periods may be a contributing factor to the slight decline in the cash ratio.

In conclusion, the company maintains a cash ratio indicating a limited, but present, ability to cover current liabilities with only cash and cash equivalents. The observed fluctuations warrant continued monitoring to assess potential impacts on short-term liquidity.