The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from –30.80% in 2019 to 12.68% in 2023.
The average EBIT Margin for the period under analysis was –5.8%, with 2020 and 2023 performing the worst and best, respectively.
In the current year, SCHLUMBERGER was able to cover its interest liabilities 11.36 times in the current year- compared to 2019 when it was –16.16 times.
The Asset turnover stood at 0.73 times in 2023 from 0.52 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of SCHLUMBERGER has fluctuated year on year. The revenue decreased by –28.30% between 2019 and 2020 and a further 22.51% increase was recorded between 2021 and 2022. There also occurred a decrease of 17.96% between 2022 and 2023 (the current period).
SCHLUMBERGER’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio decreased from 1.25:1 to 1.32:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Schlumberger is both equity and debt financed.
The debt-to-equity (D/E) ratio has been depreciating year on year. The gearing position of the company appears to be low as it stood at 59% in the current year.
