Nabors Industries Ltd (NBR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,849,710 | 2,370,550 | 2,472,160 | 2,597,540 | 3,502,510 |
| Property, plant and equipment | US$ in thousands | 2,898,730 | 3,026,100 | 3,348,500 | 3,985,710 | 4,930,550 |
| Fixed asset turnover | 0.98 | 0.78 | 0.74 | 0.65 | 0.71 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,849,710K ÷ $2,898,730K
= 0.98
The fixed asset turnover ratio for Nabors Industries Ltd has shown an increasing trend over the past five years, indicating improved efficiency in utilizing its fixed assets to generate sales.
In 2019, the fixed asset turnover was 0.62, which means that for every dollar invested in fixed assets, the company generated $0.62 in sales. This ratio increased to 0.54 in 2020, suggesting that the company became more efficient in generating sales from its fixed assets.
However, the most significant improvement occurred in 2021 when the fixed asset turnover ratio jumped to 0.61 and further increased to 0.88 in 2022. This substantial increase indicates a significant enhancement in the company's ability to generate revenue from its fixed assets.
By the end of 2023, the fixed asset turnover ratio reached 1.04, which demonstrates that the company generated $1.04 in sales for every dollar invested in fixed assets. This indicates that the company has significantly improved the efficiency of utilizing its fixed assets to generate revenue.
Overall, the increasing trend in fixed asset turnover reflects Nabors Industries Ltd's ability to optimize its fixed asset utilization and generate more revenue per dollar invested in fixed assets over the years.
Peer comparison
Dec 31, 2023