Nabors Industries Ltd (NBR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,034,530 | 1,894,440 | 1,500,460 | 1,672,550 | 2,435,330 |
| Payables | US$ in thousands | 294,442 | 314,041 | 253,748 | 220,922 | 295,159 |
| Payables turnover | 6.91 | 6.03 | 5.91 | 7.57 | 8.25 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,034,530K ÷ $294,442K
= 6.91
The payables turnover ratio for Nabors Industries Ltd has shown fluctuating trends over the past five years. The ratio increased from 5.07 in 2021 to 5.31 in 2022 before reaching 6.08 in 2023. This indicates that the company's ability to efficiently manage its accounts payable improved in 2023.
A payables turnover ratio of 6.08 in 2023 suggests that, on average, Nabors Industries Ltd paid its suppliers approximately 6.08 times during the year. This implies that the company is able to convert its accounts payable into cash relatively quickly, which can be beneficial for managing working capital and maintaining good relationships with suppliers.
Overall, the increasing trend in the payables turnover ratio over the period indicates that Nabors Industries Ltd has been effectively managing its accounts payable and optimizing its cash flow. However, it is important to note that a high payables turnover ratio can also indicate tight liquidity or potential strain on relationships with suppliers if payments are made too quickly.
Peer comparison
Dec 31, 2023