2023 Cash Flow Analysis for Schlumberger Limited SLB

Schlumberger Limited is a leading 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 services and solutions that help optimize reservoir performance and enhance oil recovery.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used during 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 understand how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Schlumberger Limited in 2023. 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. As the cash increased during the year, a portion of that cash was generated from operating activities. The cash flow from operating activities is the largest source of cash, while investing activities resulted in a cash outflow.

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 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 provide a sense of the scale of Schlumberger Limited's cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. 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 real cash flows as they happen, but a simulation based on the company's reported cash flow for 2023. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, Schlumberger Limited generated $6,637 million in cash from operating activities, spent $2,783 million on investing activities, and used $2,512 million for financing activities. Consequently, the company's cash balance increased by $1,245 million during the year.

The company's beginning cash balance was $1,655 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $2,900 million.

The company's capital expenditures for the year were $2,092 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 $4,545 million in 2023. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

In 2023, Schlumberger Limited demonstrated strong cash flow from operating activities, which significantly contributed to the increase in its cash balance by the end of the year. Despite substantial capital expenditures, the company maintained a healthy free cash flow, indicating efficient management of its cash resources. The negative cash flow from investing and financing activities suggests a focus on long-term investments and financial obligations, which are common strategies for sustaining growth and shareholder value in the oil and gas sector.