Nabors Industries Ltd (NBR)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,197,691 | 1,978,660 | 1,992,912 | 2,009,296 | 2,034,527 | 2,068,970 | 2,048,942 | 1,992,143 | 1,894,435 | 1,779,880 | 1,679,410 | 1,581,492 | 1,500,455 | 1,256,945 | 1,184,420 | 1,193,175 | 1,626,257 | 2,115,331 | 2,431,059 | 2,718,206 |
| Inventory | US$ in thousands | 129,979 | 141,864 | 147,751 | 149,789 | 147,798 | 146,254 | 152,236 | 144,223 | 127,947 | 129,116 | 120,614 | 132,126 | 126,448 | 136,992 | 147,362 | 154,272 | 160,585 | 164,029 | 166,537 | 173,991 |
| Inventory turnover | 16.91 | 13.95 | 13.49 | 13.41 | 13.77 | 14.15 | 13.46 | 13.81 | 14.81 | 13.79 | 13.92 | 11.97 | 11.87 | 9.18 | 8.04 | 7.73 | 10.13 | 12.90 | 14.60 | 15.62 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,197,691K ÷ $129,979K
= 16.91
The inventory turnover ratio is a key financial metric that measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced over a certain period.
Looking at the inventory turnover data for Nabors Industries Ltd, we see a fluctuating trend in the ratio over the reported quarters. The inventory turnover ratio was relatively high at 15.62 on March 31, 2020, indicating efficient inventory management. However, the ratio gradually decreased over the quarters, reaching a low of 7.73 on March 31, 2021, which may suggest potential issues with inventory control or sales performance.
Subsequently, there was a slight improvement in the ratio, hovering around 13 to 14 times from March 31, 2022, to June 30, 2024. This could indicate some efforts by the company to streamline inventory management processes and improve sales turnover.
Overall, it is essential for Nabors Industries Ltd to maintain a balance in inventory turnover to optimize working capital and avoid holding obsolete or excessive inventory. Further analysis into the underlying reasons for the fluctuations in inventory turnover can provide insights into the company's operational efficiency and overall financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024