Nabors Industries Ltd (NBR)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.85 | 6.91 | 6.03 | 5.91 | 7.57 | |
| Number of days of payables | days | 53.32 | 52.82 | 60.51 | 61.73 | 48.21 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.85
= 53.32
The number of days of payables of Nabors Industries Ltd has shown some variability over the past five years. It increased from 48.21 days as of December 31, 2020, to 61.73 days as of December 31, 2021, indicating that the company took longer to pay its suppliers during that period. Subsequently, there was a slight decrease in the number of days of payables to 60.51 days as of December 31, 2022, followed by a further decline to 52.82 days as of December 31, 2023. As of December 31, 2024, the number of days of payables increased slightly to 53.32 days.
The trend in the number of days of payables suggests that the company may have adjusted its payment practices or strategies with suppliers over the years. A higher number of days of payables may indicate that Nabors Industries Ltd is taking longer to settle its outstanding obligations with suppliers, potentially improving its cash flow position in the short term. However, an excessively high number of days of payables could signal strained relationships with suppliers or financial distress. Conversely, a lower number of days of payables may reflect efficient working capital management but could also imply a potential strain on supplier relationships due to early payment demands.
It is essential for stakeholders to monitor changes in the number of days of payables to assess the company's liquidity, operational efficiency, and supplier relationships effectively.
Peer comparison
Dec 31, 2024