Nabors Industries Ltd (NBR)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,824,854 | 2,824,158 | 2,835,559 | 2,686,524 | 2,442,417 | 2,896,069 | 2,695,320 | 2,563,727 | 2,469,769 | 1,795,405 | 1,690,978 | 1,723,505 | 1,980,035 | 2,250,900 | 2,571,586 | 2,806,404 | 2,867,832 | 2,935,651 | 3,017,736 | 3,064,840 |
| Property, plant and equipment | US$ in thousands | 2,898,730 | 2,945,960 | 2,963,900 | 2,976,830 | 3,026,100 | 3,100,290 | 3,186,850 | 3,245,570 | 3,348,500 | 3,443,740 | 3,562,350 | 3,829,220 | 3,985,710 | 4,225,030 | 4,395,720 | 4,597,310 | 4,930,550 | 5,152,240 | 5,301,250 | 5,399,510 |
| Fixed asset turnover | 0.97 | 0.96 | 0.96 | 0.90 | 0.81 | 0.93 | 0.85 | 0.79 | 0.74 | 0.52 | 0.47 | 0.45 | 0.50 | 0.53 | 0.59 | 0.61 | 0.58 | 0.57 | 0.57 | 0.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,824,854K ÷ $2,898,730K
= 0.97
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue relative to its investment in fixed assets. For Nabors Industries Ltd, the fixed asset turnover has shown a consistent increasing trend over the past eight quarters, indicating an improvement in the efficiency of utilizing fixed assets to generate revenue.
In Q1 2022, the fixed asset turnover was 0.65, showing that for each dollar invested in fixed assets, the company generated $0.65 in revenue. Since then, there has been a steady increase in fixed asset turnover, reaching 1.04 in Q4 2023.
This improvement suggests that Nabors Industries Ltd has been more efficient in utilizing its fixed assets to generate revenue over time. A higher fixed asset turnover ratio can indicate better operational performance and efficiency in the use of assets, which may lead to higher profitability and shareholder value.
Overall, the increasing trend in fixed asset turnover for Nabors Industries Ltd signals positive operational efficiency and effective asset management, which bodes well for the company's financial performance and long-term sustainability.
Peer comparison
Dec 31, 2023