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Schlumberger (Schlumberger) Financial Strength

: 6 (As of Dec. 2023)
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Schlumberger has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Schlumberger's Interest Coverage for the quarter that ended in Dec. 2023 was 11.64. Schlumberger's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.33. As of today, Schlumberger's Altman Z-Score is 3.23.


Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Schlumberger's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Schlumberger Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Schlumberger's Financial Strength distribution charts can be found below:

* The bar in red indicates where Schlumberger's Financial Strength falls into.



Schlumberger Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Schlumberger's Interest Expense for the months ended in Dec. 2023 was $-130 Mil. Its Operating Income for the months ended in Dec. 2023 was $1,513 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $10,842 Mil.

Schlumberger's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1513/-130
=11.64

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Schlumberger's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1123 + 10842) / 35960
=0.33

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Schlumberger has a Z-score of 3.23, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.23 is strong.

* 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.


Schlumberger  (NYSE:SLB) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Schlumberger has the Financial Strength Rank of 6.


Schlumberger Financial Strength Related Terms

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


Schlumberger (Schlumberger) Business Description

Address
5599 San Felipe, 17th Floor, Houston, TX, USA, 77056
SLB, formerly known as Schlumberger, is the largest oilfield service firm in the world, with expertise in myriad disciplines, including reservoir performance, well construction, production enhancement, and more recently, digital solutions. It maintains a reputation as one of the industry's leading innovators, which has earned it dominant share in numerous end markets.
Executives
Mogharbel Khaled Al officer: President Drilling Group C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Stephane Biguet officer: VP Controller C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Gavin Rennick officer: VP, Human Resources 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
De La Chevardiere Patrick director 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Demosthenis Pafitis officer: Chief Technology Officer 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Kevin Fyfe officer: VP Controller-Operations 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
Katharina Beumelburg officer: Chief Sustainability Officer 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
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
Vijay Kasibhatla officer: Director, M&A 5599 SAN FELIPE 17 FLOOR, HOUSTON TX 77056
Rajeev Sonthalia officer: President, IPM 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Abdellah Merad officer: VP Controller, Operations 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
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

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