2022 Cash Flow Analysis for Schlumberger Limited SLB

Schlumberger Limited is a leading global provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. The company is headquartered in Houston, Texas, and was founded in 1926. Schlumberger is renowned for its comprehensive range of products and services, which include seismic acquisition and processing, formation evaluation, well testing and directional drilling, well cementing and stimulation, artificial lift, well completions and consulting, and software and information management.

The cash flow statement provides insights into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to assess how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Schlumberger Limited in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. During the year, the cash decreased, indicating that some of it was used for financing and investing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments.

The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments. After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To understand the scale of Schlumberger Limited's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of actual cash flows as they occur, but a simulation based on the company's reported cash flow for 2022. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Schlumberger Limited generated $3,720 million in cash from operating activities, spent $1,388 million on investing activities, and used $2,382 million in financing activities. Consequently, the company's cash balance decreased by $50 million during the year.

The company's beginning cash balance was $1,757 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $1,655 million.

The company's capital expenditures for the year were $1,715 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $2,005 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

In 2022, Schlumberger Limited demonstrated strong cash flow from operating activities, which was the primary source of cash. Despite significant capital expenditures, the company maintained a healthy free cash flow, indicating its ability to fund dividends, share repurchases, or other investments. The negative cash flow from investing activities suggests a focus on long-term growth through new investments, while the negative cash flow from financing activities reflects the company's efforts to manage its financial obligations. Overall, Schlumberger's cash flow management in 2022 highlights its strategic investments and financial discipline.