Stock Analysis on Net

Schlumberger Ltd. (NYSE:SLB)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Schlumberger Ltd., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.59 0.69 0.95 1.40 0.64
Debt to equity (including operating lease liability) 0.63 0.73 1.00 1.48 0.70
Debt to capital 0.37 0.41 0.49 0.58 0.39
Debt to capital (including operating lease liability) 0.39 0.42 0.50 0.60 0.41
Debt to assets 0.25 0.28 0.34 0.40 0.27
Debt to assets (including operating lease liability) 0.27 0.30 0.36 0.42 0.30
Financial leverage 2.38 2.44 2.77 3.52 2.37
Coverage Ratios
Interest coverage 11.50 9.72 5.40 -19.07 -16.11
Fixed charge coverage 3.78 3.53 2.37 -4.76 -3.51

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Schlumberger Ltd. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Schlumberger Ltd. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Schlumberger Ltd. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Schlumberger Ltd. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Schlumberger Ltd. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Schlumberger Ltd. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Schlumberger Ltd. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Schlumberger Ltd. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Schlumberger Ltd. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity

Schlumberger Ltd., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
 
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Solvency Ratio
Debt to equity1 0.59 0.69 0.95 1.40 0.64
Benchmarks
Debt to Equity, Industry
Energy 0.29 0.30 0.42 0.58 0.37

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
Debt to equity = Total debt ÷ Total SLB stockholders’ equity
= 11,965 ÷ 20,189 = 0.59

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Schlumberger Ltd. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

Schlumberger Ltd., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
Operating lease liabilities (recognized in Accounts payable and accrued liabilities) 201 160 186 248 494
Operating lease liabilities (recognized in Other Liabilities) 609 539 628 763 917
Total debt (including operating lease liability) 12,775 12,925 15,009 17,897 16,705
 
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Solvency Ratio
Debt to equity (including operating lease liability)1 0.63 0.73 1.00 1.48 0.70
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Energy 0.33 0.33 0.45 0.62 0.41

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total SLB stockholders’ equity
= 12,775 ÷ 20,189 = 0.63

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Schlumberger Ltd. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

Schlumberger Ltd., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Total capital 32,154 29,911 29,199 28,957 39,054
Solvency Ratio
Debt to capital1 0.37 0.41 0.49 0.58 0.39
Benchmarks
Debt to Capital, Industry
Energy 0.23 0.23 0.30 0.37 0.27

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
Debt to capital = Total debt ÷ Total capital
= 11,965 ÷ 32,154 = 0.37

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Schlumberger Ltd. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

Schlumberger Ltd., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
Operating lease liabilities (recognized in Accounts payable and accrued liabilities) 201 160 186 248 494
Operating lease liabilities (recognized in Other Liabilities) 609 539 628 763 917
Total debt (including operating lease liability) 12,775 12,925 15,009 17,897 16,705
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Total capital (including operating lease liability) 32,964 30,610 30,013 29,968 40,465
Solvency Ratio
Debt to capital (including operating lease liability)1 0.39 0.42 0.50 0.60 0.41
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Energy 0.25 0.25 0.31 0.38 0.29

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,775 ÷ 32,964 = 0.39

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Schlumberger Ltd. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

Schlumberger Ltd., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
 
Total assets 47,957 43,135 41,511 42,434 56,312
Solvency Ratio
Debt to assets1 0.25 0.28 0.34 0.40 0.27
Benchmarks
Debt to Assets, Industry
Energy 0.15 0.15 0.20 0.25 0.18

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
Debt to assets = Total debt ÷ Total assets
= 11,965 ÷ 47,957 = 0.25

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Schlumberger Ltd. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Schlumberger Ltd., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,123 1,632 909 850 524
Long-term debt, excluding current portion 10,842 10,594 13,286 16,036 14,770
Total debt 11,965 12,226 14,195 16,886 15,294
Operating lease liabilities (recognized in Accounts payable and accrued liabilities) 201 160 186 248 494
Operating lease liabilities (recognized in Other Liabilities) 609 539 628 763 917
Total debt (including operating lease liability) 12,775 12,925 15,009 17,897 16,705
 
Total assets 47,957 43,135 41,511 42,434 56,312
Solvency Ratio
Debt to assets (including operating lease liability)1 0.27 0.30 0.36 0.42 0.30
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Energy 0.17 0.17 0.21 0.27 0.20

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,775 ÷ 47,957 = 0.27

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Schlumberger Ltd. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Schlumberger Ltd., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets 47,957 43,135 41,511 42,434 56,312
Total SLB stockholders’ equity 20,189 17,685 15,004 12,071 23,760
Solvency Ratio
Financial leverage1 2.38 2.44 2.77 3.52 2.37
Benchmarks
Financial Leverage, Industry
Energy 1.95 1.97 2.15 2.29 2.04

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
Financial leverage = Total assets ÷ Total SLB stockholders’ equity
= 47,957 ÷ 20,189 = 2.38

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Schlumberger Ltd. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

Schlumberger Ltd., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB 4,203 3,441 1,881 (10,518) (10,137)
Add: Net income attributable to noncontrolling interest 72 51 47 32 30
Add: Income tax expense 1,007 779 446 (812) (311)
Add: Interest expense 503 490 539 563 609
Earnings before interest and tax (EBIT) 5,785 4,761 2,913 (10,735) (9,809)
Solvency Ratio
Interest coverage1 11.50 9.72 5.40 -19.07 -16.11
Benchmarks
Interest Coverage, Industry
Energy 26.19 39.88 12.58 -11.55 6.66

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
Interest coverage = EBIT ÷ Interest expense
= 5,785 ÷ 503 = 11.50

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Schlumberger Ltd. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

Schlumberger Ltd., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to SLB 4,203 3,441 1,881 (10,518) (10,137)
Add: Net income attributable to noncontrolling interest 72 51 47 32 30
Add: Income tax expense 1,007 779 446 (812) (311)
Add: Interest expense 503 490 539 563 609
Earnings before interest and tax (EBIT) 5,785 4,761 2,913 (10,735) (9,809)
Add: Operating lease expense 1,400 1,200 1,200 1,400 1,700
Earnings before fixed charges and tax 7,185 5,961 4,113 (9,335) (8,109)
 
Interest expense 503 490 539 563 609
Operating lease expense 1,400 1,200 1,200 1,400 1,700
Fixed charges 1,903 1,690 1,739 1,963 2,309
Solvency Ratio
Fixed charge coverage1 3.78 3.53 2.37 -4.76 -3.51
Benchmarks
Fixed Charge Coverage, Industry
Energy 9.42 15.31 5.71 -3.89 2.96

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,185 ÷ 1,903 = 3.78

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Schlumberger Ltd. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.