Nabors Industries Ltd (NBR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 16.91 | 13.77 | 14.81 | 11.87 | 10.42 | |
| DOH | days | 21.59 | 26.52 | 24.65 | 30.76 | 35.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.91
= 21.59
The days of inventory on hand (DOH) for Nabors Industries Ltd have shown a declining trend over the past five years. In 2020, the company held inventory for an average of 35.04 days, which decreased to 30.76 days in 2021. This trend continued with further reductions in DOH to 24.65 days in 2022, 26.52 days in 2023, and reaching the lowest point at 21.59 days in 2024.
The decreasing trend in DOH indicates that Nabors Industries Ltd has been managing its inventory levels more efficiently over the years. A lower DOH implies that the company is selling its inventory at a faster pace or holding smaller quantities of inventory, which can lead to cost savings and improved liquidity.
Overall, the decreasing trend in DOH for Nabors Industries Ltd reflects effective inventory management practices, potentially resulting in improved operational efficiency and profitability for the company.
Peer comparison
Dec 31, 2024