Nabors Industries Ltd (NBR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,877,660 | 2,849,710 | 2,370,550 | 2,472,160 | 2,597,540 |
| Property, plant and equipment | US$ in thousands | 2,830,960 | 2,898,730 | 3,026,100 | 3,348,500 | 3,985,710 |
| Fixed asset turnover | 1.02 | 0.98 | 0.78 | 0.74 | 0.65 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,877,660K ÷ $2,830,960K
= 1.02
The fixed asset turnover ratio measures how efficiently Nabors Industries Ltd is generating revenue from its fixed assets. From the data provided, we can see a positive trend in the company's fixed asset turnover over the five-year period.
In December 31, 2020, the fixed asset turnover was 0.65, indicating that the company generated $0.65 in revenue for every dollar invested in fixed assets. Over the following years, the ratio increased to 0.74 in 2021, 0.78 in 2022, 0.98 in 2023, and further improved to 1.02 in 2024.
The increasing trend in the fixed asset turnover ratio implies that Nabors Industries Ltd has been utilizing its fixed assets more efficiently to generate revenue over time. This could be a result of better asset management, increased productivity, or improved operational efficiency.
Overall, the company's improving fixed asset turnover ratio suggests that it is effectively utilizing its fixed assets to generate sales, which is a positive indicator of operational efficiency and financial performance.
Peer comparison
Dec 31, 2024