Nabors Industries Ltd (NBR)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 2,528,934 | 2,523,237 | 2,454,606 | 2,356,456 |
| Payables | US$ in thousands | 294,442 | 287,228 | 301,751 | 306,543 | 314,041 | 290,167 | 271,117 | 278,878 | 253,748 | 251,740 | 232,543 | 234,944 | 220,922 | 216,495 | 221,755 | 297,274 | 295,159 | 364,658 | 410,469 | 399,802 |
| Payables turnover | 6.91 | 7.20 | 6.79 | 6.50 | 6.03 | 6.13 | 6.19 | 5.67 | 5.91 | 4.99 | 5.09 | 5.08 | 7.36 | 9.77 | 10.96 | 9.14 | 8.57 | 6.92 | 5.98 | 5.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,034,527K ÷ $294,442K
= 6.91
To analyze Nabors Industries Ltd payables turnover, we calculate the payables turnover for each quarter by dividing the cost of goods sold by the average accounts payable. The payables turnover ratios for the last eight quarters are as follows: 6.08, 6.35, 5.99, 5.73, 5.31, 5.36, 5.39, and 4.91.
A higher payables turnover indicates that the company is more efficient in paying its suppliers and managing its accounts payable. Nabors Industries Ltd has shown relatively consistent payables turnover over the past eight quarters, ranging between 4.91 and 6.35.
The decreasing trend in payables turnover from Q3 2022 (5.39) to Q1 2023 (5.73) and Q2 2023 (5.99) suggests the company took longer to pay its suppliers during these quarters. However, the payables turnover ratio increased in Q3 2023 (6.35) and Q4 2023 (6.08), indicating an improvement in the efficiency of managing accounts payable during these periods.
Overall, monitoring payables turnover helps assess a company's liquidity and efficiency in managing its working capital. An increasing trend could signal improved cash flow management, while a decreasing trend may indicate delays in settling obligations to suppliers. In the case of Nabors Industries Ltd, the company has shown a relatively stable and efficient management of its payables turnover over the analyzed quarters.
Peer comparison
Dec 31, 2023