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SLB (SLB) Degree of Financial Leverage : 0.90 (As of Jun. 2025)


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What is SLB Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). SLB's Degree of Financial Leverage for the quarter that ended in Jun. 2025 was 0.90. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for SLB's Degree of Financial Leverage or its related term are showing as below:

SLB's Degree of Financial Leverage is ranked worse than
83.42% of 971 companies
in the Oil & Gas industry
Industry Median: 1.04 vs SLB: 0.90

SLB Degree of Financial Leverage Historical Data

The historical data trend for SLB's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SLB Degree of Financial Leverage Chart

SLB Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.36 0.92 1.29 1.01 0.94

SLB Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.92 0.80 0.94 2.25 0.90

Competitive Comparison of SLB's Degree of Financial Leverage

For the Oil & Gas Equipment & Services subindustry, SLB's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SLB's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, SLB's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where SLB's Degree of Financial Leverage falls into.


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SLB Degree of Financial Leverage Calculation

SLB's Degree of Financial Leverage for the quarter that ended in Jun. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 2.92 (Jun. 2025) / 3.06 (Jun. 2024) - 1 )/( 5798 (Jun. 2025) / 6110 (Jun. 2024) - 1 )
=-0.0458/-0.0511
=0.90***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


SLB  (NYSE:SLB) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


SLB Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of SLB's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


SLB Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » SLB (NYSE:SLB) » Definitions » Degree of Financial Leverage
Address
5599 San Felipe, 17th Floor, Houston, TX, USA, 77056
SLB is the world's premier oilfield-services company as measured by market share. While the industry is mostly fragmented, SLB holds the first or second competitive position in many of the differentiated oligopolies it operates in. Also known as Schlumberger, the company was founded in 1926 by two brothers bearing the same last name. Today it's most known as a global industry leader in innovation, while it focuses its strategy on its three growth engines: its core, digital, and new energy businesses. Over three fourths of its revenue base is tied to international markets, while the company boasts roughly $3 billion in digital-related revenue.
Executives
De La Chevardiere Patrick director 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Gavin Rennick officer: VP, Human Resources 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
Bejar Carmen Rando officer: Chief People Officer 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
Abdellah Merad officer: VP Controller, Operations 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Vijay Kasibhatla officer: Director, M&A 5599 SAN FELIPE 17 FLOOR, HOUSTON TX 77056
Stephane Biguet officer: VP Controller C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Mogharbel Khaled Al officer: President Drilling Group C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Howard Guild officer: Chief Accounting Officer C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77046
Dianne B. Ralston officer: Chief Legal Officer C/O TECHNIPFMC PLC, 11740 KATY FREEWAY, ENERGY TOWER 3, HOUSTON TX 77079
Ugo Prechner officer: VP Controller 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Demosthenis Pafitis officer: Chief Technology Officer 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Katharina Beumelburg officer: Chief Sustainability Officer 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Kevin Fyfe officer: VP Controller-Operations 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
James T Hackett director C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Rakesh Jaggi officer: Pres Digital & Integration 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056