Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Schlumberger Ltd., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals several noteworthy trends over the five-year period ending in 2024. The analysis focuses on ratios associated with asset efficiency and turnover, providing insight into the operational effectiveness and financial management within the company.
- Net Fixed Asset Turnover
- There is a consistent upward trajectory in the net fixed asset turnover ratio, increasing from 3.46 in 2020 to 4.93 in 2024. This suggests that the company has improved its ability to generate revenue from its net fixed assets, indicating enhanced operational efficiency or more effective utilization of its property, plant, and equipment over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This modified ratio, which accounts for operating leases and right-of-use assets, also shows a steady increase, rising from 3.13 in 2020 to 4.50 in 2024. Similar to the standard net fixed asset turnover ratio, this improvement points to better asset usage when leased assets are considered, reflecting an overall enhancement in asset deployment strategies.
- Total Asset Turnover
- The total asset turnover ratio moves upward from 0.56 in 2020 to 0.74 in 2024. Although the absolute values are lower than the fixed asset turnover ratios due to the inclusion of all assets, this positive trend indicates growing efficiency in generating sales from the company's entire asset base. The improvement suggests effective asset management and potential growth in sales relative to asset size.
- Equity Turnover
- The equity turnover ratio demonstrates a distinct pattern, initially declining from 1.96 in 2020 to 1.53 in 2021. Following this, a gradual recovery is observed, increasing to 1.72 by 2024. This indicates that after a decrease in the company's efficiency at generating revenue from shareholders' equity in 2021, the company managed to enhance this efficiency steadily over the subsequent years.
In summary, the data indicates a strengthening in asset utilization, with ongoing improvements in net fixed asset turnover (both standard and inclusive of lease assets) and total asset turnover, reflecting better revenue generation from assets. The equity turnover ratio, while initially weakened, shows improvement thereafter, suggesting increasing effectiveness in leveraging shareholder equity for revenue growth. These trends collectively point towards enhanced operational and financial efficiency from 2020 to 2024.
Net Fixed Asset Turnover
Schlumberger Ltd., net fixed asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Fixed assets less accumulated depreciation
= ÷ =
The financial data demonstrates a consistent upward trend in revenue over the five-year period under review. Revenue increased from US$ 23,601 million in 2020 to US$ 36,289 million in 2024, reflecting steady growth each year. This indicates expanding sales and possibly improved market demand or operational efficiency.
Regarding fixed assets, specifically net fixed assets defined as fixed assets less accumulated depreciation, there is a slight fluctuation. The value declined from US$ 6,826 million in 2020 to US$ 6,429 million in 2021, suggesting some asset disposals or higher depreciation expenses in that year. However, from 2021 onwards, net fixed assets increased gradually, reaching US$ 7,359 million by 2024, implying new asset acquisitions or capital investments.
The net fixed asset turnover ratio, which measures the efficiency with which fixed assets generate revenue, exhibits a consistently positive trend. Starting at 3.46 in 2020, it rose each year to reach 4.93 by 2024. This indicates that the company is generating increasingly higher revenue per unit of net fixed assets, reflecting improved asset utilization or enhanced operational productivity.
- Revenue
- Shows a steady growth trajectory with a cumulative increase of approximately 54% over five years.
- Net fixed assets
- Experienced a minor dip in 2021 but subsequently increased, indicating ongoing investments in fixed assets.
- Net fixed asset turnover
- Consistent improvement throughout the period, highlighting enhanced efficiency in the use of fixed assets to generate revenue.
Overall, the data suggests a company that is expanding its sales while simultaneously managing and investing in its fixed asset base effectively. The rising asset turnover ratio further points to operational improvements that leverage the fixed asset investments to yield higher revenue growth.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Schlumberger Ltd., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Fixed assets less accumulated depreciation (including operating lease, right-of-use asset)
= ÷ =
The financial data reveals several key trends over the period from 2020 to 2024. Revenue has shown a consistent upward trajectory, increasing from $23,601 million in 2020 to $36,289 million in 2024, indicating strong growth in the company's top-line performance. This represents a notable expansion in sales or service income over the five-year span.
Regarding fixed assets, net values after depreciation have experienced some fluctuations. The net fixed assets decreased from $7,536 million in 2020 to $6,982 million in 2021, likely reflecting asset disposals or increased depreciation charges. Subsequently, the figure climbed to $8,061 million by 2024, suggesting investments in property, plant, and equipment, or recognized right-of-use assets are increasing, possibly to support growing operations.
The net fixed asset turnover ratio, which measures the efficiency with which the fixed assets generate revenue, has improved steadily from 3.13 in 2020 to 4.5 in 2024. This upward trend demonstrates an increasing ability to generate more revenue per unit of fixed asset base, reflecting enhanced asset utilization or operational efficiencies implemented during the period.
- Revenue
- Gradual and consistent increase throughout the five years, reflecting growth in business operations.
- Net Fixed Assets
- Initial decline followed by a progressive rise, indicating possible periods of asset disposal and reinvestment or capital expenditures.
- Net Fixed Asset Turnover
- Marked improvement, highlighting more effective use of the asset base to generate higher revenues.
Overall, the data points to a company that has been expanding its revenue base while simultaneously investing in and more effectively utilizing its fixed assets, thereby enhancing operational efficiency over the examined period.
Total Asset Turnover
Schlumberger Ltd., total asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
The financial data reveals a consistent upward trend in revenue over the five-year period. Revenue increased from $23,601 million in 2020 to $36,289 million in 2024, indicating a steady growth trajectory with a notable acceleration starting from 2021 through 2024.
Total assets also show a positive, although more moderate, growth pattern during the same timeframe. Beginning at $42,434 million in 2020, total assets slightly decreased in 2021 to $41,511 million but then resumed an upward path to reach $48,935 million by 2024. This indicates a strategic expansion of the asset base after a brief contraction.
The total asset turnover ratio exhibits a strong improvement over the observed period, climbing from 0.56 in 2020 to 0.74 in 2024. This suggests that the company has been increasing its efficiency in utilizing its assets to generate revenue, with particularly significant gains occurring from 2022 onwards. The ratio's rise aligns with the increasing revenue and relatively stable asset growth, signifying enhanced operational effectiveness.
- Revenue Growth:
- Demonstrates a continuous increase, peaking at $36,289 million in 2024, reflecting robust demand or successful market penetration strategies.
- Total Assets Movement:
- Displays a slight dip in 2021 followed by a progressive increase, suggesting a period of recalibration before investing in or acquiring additional assets to support growth.
- Total Asset Turnover Ratio:
- Improved substantially across the years, illustrating a better conversion of asset investment into sales, which may be indicative of improved management efficiency or operational enhancements.
Equity Turnover
Schlumberger Ltd., equity turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Revenue ÷ Total SLB stockholders’ equity
= ÷ =
The financial data reveals a consistent upward trend in revenue for the analyzed company over the five-year period. Starting from US$ 23,601 million at the end of 2020, revenue slightly decreased to US$ 22,929 million in 2021 but then rebounded sharply in subsequent years, reaching US$ 36,289 million by the end of 2024. This represents a significant overall increase, indicating robust growth in the company's sales or service income.
Total stockholders' equity also shows a steady increase throughout the period. The equity rose from US$ 12,071 million in 2020 to US$ 21,130 million in 2024. This upward trend suggests strengthening financial stability and an accumulation of retained earnings or new capital injections over time.
Regarding efficiency, the equity turnover ratio, which measures how effectively the company generates revenue from its equity base, experienced a decline from 1.96 in 2020 to its lowest point of 1.53 in 2021. From 2021 onward, the ratio improved gradually to 1.72 in 2024 but did not return to the initial 2020 level. This pattern may imply that while revenue has grown, the growth in equity has outpaced revenue increases somewhat, indicating a relatively more conservative utilization of equity or a change in operational dynamics affecting turnover.
Overall, the financial indicators reflect strong growth in revenue and equity, accompanied by a moderate recovery in efficiency as measured by equity turnover. The company appears to be expanding its asset base and capital base successfully, translating into increased revenues albeit with a cautious approach to leveraging equity for revenue generation.