Nabors Industries Ltd (NBR)
Payables 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 |
| Payables | US$ in thousands | 321,030 | 316,694 | 331,468 | 319,436 | 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 |
| Payables turnover | 6.85 | 6.25 | 6.01 | 6.29 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,197,691K ÷ $321,030K
= 6.85
The payables turnover ratio measures how efficiently a company manages its trade credit with suppliers by indicating the number of times, on average, a company pays its suppliers within a certain period.
Analyzing the payables turnover of Nabors Industries Ltd over the course of several quarters, we observe fluctuations in the ratio. The payables turnover ratio was highest in June 2020 at 10.96 and showed a decreasing trend afterwards until March 2021, indicating that the company was taking longer to pay its suppliers during this period.
From March 2021 to June 2022, the payables turnover remained relatively stable within a range of 5.08 to 6.19. This consistency suggests that the company was managing its payables effectively during this time frame.
However, by September 2022, the payables turnover increased to 6.13 and continued to fluctuate slightly around this level until December 2024, with the ratio ranging from 6.01 to 6.85. This indicates that Nabors Industries Ltd was maintaining a moderate pace in paying off its trade credit obligations to suppliers during these quarters.
Overall, the payables turnover ratio of Nabors Industries Ltd reflects varying payment practices towards suppliers, with some quarters showing more efficient management of trade credit while others demonstrating a longer payment period. It is essential for the company to closely monitor and manage its payables turnover to ensure healthy supplier relationships and optimal working capital management.
Peer comparison
Dec 31, 2024