2024 Cash Flow Analysis for Schlumberger Limited SLB

Schlumberger Limited is a global leader in oilfield services, providing 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 advanced technology and innovative solutions that help optimize reservoir performance and improve oil and gas recovery.

The cash flow statement is a crucial financial document that outlines the cash generated and utilized by a company over a specific period. It is segmented into three key areas: operating activities, investing activities, and financing activities. This statement provides insights into how Schlumberger Limited manages its cash resources, offering valuable information to investors and analysts.

How to read the chart

The chart above illustrates the cash flow of Schlumberger Limited in 2024. The width of the bars signifies the volume of cash flow, with broader bars indicating larger amounts.

Starting on the left, we observe the company's cash position at the beginning of the year. The cash position increased over the year, primarily due to cash generated from operating activities. However, the company also engaged in significant investing and financing activities, which impacted the overall cash flow.

The cash flow from investing activities is negative, indicating that Schlumberger Limited spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, suggesting that the company disbursed more cash for activities such as debt repayments, share buybacks, or dividend payments.

Taking into account the changes 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 perspective on the scale of Schlumberger Limited's cash flow, we have developed a real-time counter that simulates the company's cash flow for 2024. The counter activates when you scroll to this section and operates at the same rate as the company's reported cash flow.

This counter is not a live representation of real-time cash flows but a simulation based on the company's reported cash flow for 2024. It is designed to convey the magnitude of the company's cash flow and the speed at which it changes.

Cash Flow Statement

In 2024, Schlumberger Limited generated $6,602 million in cash from operating activities. The company spent $3,145 million on investing activities and $2,772 million on financing activities. Consequently, the company's cash balance increased by $644 million during the year.

The company's beginning cash balance was $2,900 million, which typically includes cash and cash equivalents, such as short-term investments that can be readily converted into cash. By the end of the year, the company's cash balance had risen to $3,544 million.

Schlumberger's capital expenditures for the year amounted to $2,129 million, representing the cash spent on investments in property, plant, and equipment. By subtracting capital expenditures from cash flow from operations, the company's free cash flow was calculated to be $4,473 million in 2024. This figure represents the cash available for dividends, stock repurchases, or other investments.

Summary

In 2024, Schlumberger Limited demonstrated robust cash flow management, with a significant increase in cash generated from operating activities. Despite substantial expenditures in both investing and financing activities, the company successfully increased its cash balance by the end of the year. The free cash flow of $4,473 million highlights Schlumberger's strong capacity to fund dividends, share buybacks, or other strategic investments, underscoring its financial stability and operational efficiency.