Nabors Industries Ltd (NBR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,197,690 | 2,034,530 | 1,894,440 | 1,500,460 | 1,672,550 |
| Payables | US$ in thousands | 321,030 | 294,442 | 314,041 | 253,748 | 220,922 |
| Payables turnover | 6.85 | 6.91 | 6.03 | 5.91 | 7.57 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,197,690K ÷ $321,030K
= 6.85
The payables turnover of Nabors Industries Ltd has fluctuated over the past five years. In 2020, the payables turnover was 7.57, indicating that the company was able to pay off its accounts payable 7.57 times during the year. However, this ratio decreased to 5.91 in 2021, suggesting that the company took longer to pay off its payables that year.
Subsequently, there was a slight improvement in the payables turnover ratio to 6.03 in 2022, followed by a more notable increase to 6.91 in 2023. This improvement indicates that the company was managing its accounts payable more efficiently during these years.
In 2024, the payables turnover ratio decreased slightly to 6.85, but overall, it remained at a healthy level, implying that Nabors Industries Ltd continued to effectively manage its payables during that year.
Overall, variations in the payables turnover ratio can provide insights into the company's liquidity, working capital management, and relationships with suppliers. It is important to monitor this ratio over time to assess the company's ability to efficiently manage its accounts payable and maintain good relationships with its creditors.
Peer comparison
Dec 31, 2024