Market Overview

A Look Into Schlumberger's Debt


Over the past three months, shares of Schlumberger Inc. (NYSE: SLB) increased by 21.05%. Before having a look at the importance of debt, let's look at how much debt Schlumberger has.

Schlumberger's Debt

Based on Schlumberger’s balance sheet as of April 22, 2020, long-term debt is at $15.41 billion and current debt is at $1.23 billion, amounting to $16.64 billion in total debt. Adjusted for $1.38 billion in cash-equivalents, the company's net debt is at $15.27 billion.

Shareholders look at the debt-ratio to understand how much financial leverage a company has. Schlumberger has $48.59 billion in total assets, therefore making the debt-ratio 0.34. As a rule of thumb, a debt-ratio more than 1 indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 25% might be higher for one industry, whereas average for another.

Importance of Debt

Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.

Interest-payment obligations can impact the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.


Related Articles (SLB)

View Comments and Join the Discussion!

Posted-In: Debt InsightsNews Intraday Update Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at