Nabors Industries Ltd (NBR)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	13.77	14.15	13.46	13.81	14.81	13.79	13.92	11.97	11.87	9.18	8.04	7.73	10.13	12.90	14.60	15.62	14.34	13.56	13.76	14.18
Receivables turnover	8.12	8.69	9.53	8.75	7.46	9.56	9.69	8.63	6.38	6.35	5.42	5.20	4.37	6.48	7.37	6.17	5.37	4.78	4.09	4.12
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
Working capital turnover	6.54	6.54	6.54	5.68	6.04	7.12	6.75	5.95	2.53	2.23	3.03	3.16	3.21	3.32	4.09	4.09	4.84	4.21	4.35	3.74

Nabors Industries Ltd's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory turnover: The inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 11.87 to 13.02. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales. A higher inventory turnover signifies that Nabors Industries is selling its products quickly, which is positive for cash flow and reduces the risk of obsolete inventory.

2. Receivables turnover: The receivables turnover ratio has shown a fluctuating trend, varying from 7.15 to 10.09. A higher receivables turnover suggests that the company is efficient in collecting payments from customers, which is indicative of effective credit management. However, the fluctuation in this ratio may indicate changes in customer payment behavior or the company's credit policies.

3. Payables turnover: The payables turnover ratio has also fluctuated, ranging from 4.91 to 6.35. A higher payables turnover ratio indicates that the company is managing its payables effectively and paying its suppliers promptly. However, the variability in this ratio may signal changes in payment terms or vendor relationships.

4. Working capital turnover: The working capital turnover ratio has shown an increasing trend over the quarters, indicating improved efficiency in utilizing working capital to generate sales. A higher working capital turnover ratio suggests that the company is effectively utilizing its current assets to support its operations and generate revenue.

Overall, while Nabors Industries Ltd shows efficiency in inventory management and working capital utilization, there are fluctuations in receivables and payables turnover ratios that may warrant further investigation into the company's credit and payment policies.

Average number of days

		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
Days of inventory on hand (DOH)	days	26.52	25.80	27.12	26.42	24.65	26.48	26.21	30.49	30.76	39.78	45.41	47.19	36.04	28.30	25.00	23.36	25.45	26.92	26.52	25.73
Days of sales outstanding (DSO)	days	44.94	42.00	38.28	41.71	48.93	38.18	37.66	42.31	57.17	57.48	67.37	70.19	83.58	56.30	49.54	59.14	67.92	76.28	89.18	88.55
Number of days of payables	days	52.82	50.67	53.75	56.16	60.51	59.50	58.92	64.36	61.73	73.10	71.66	71.87	49.58	37.36	33.29	39.92	42.60	52.75	61.04	61.93

The activity ratios of Nabors Industries Ltd over the past eight quarters provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The DOH has varied over the quarters, ranging from 28.03 days to 30.74 days.
- Generally, the company has been able to manage its inventory efficiently, with a moderate level of fluctuation.
- The increase in DOH from Q1 2022 to Q2 2022 and the subsequent decrease may suggest some adjustments in inventory management practices.

2. Days of Sales Outstanding (DSO):
- The DSO has shown fluctuations, ranging from 36.18 days to 51.04 days.
- A lower DSO indicates that the company is collecting its receivables faster, which is generally positive for cash flow.
- The decrease in DSO from Q1 2022 to Q2 2022 followed by an increase in the subsequent quarters may indicate changes in the company's credit policies or customer payment behavior.

3. Number of Days of Payables:
- The number of days of payables has varied from 57.52 days to 74.36 days over the quarters.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially benefiting cash flow.
- The decrease in days of payables from Q1 2022 to Q2 2022 followed by a gradual increase in the subsequent quarters may reflect changes in vendor terms or payment strategies.

Overall, analyzing these activity ratios together provides a comprehensive view of Nabors Industries Ltd's operating efficiency and effectiveness in managing its inventory, receivables, and payables over the analyzed period.

Long-term

	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
Fixed asset turnover	0.97	0.96	0.96	0.90	0.81	0.93	0.85	0.79	0.74	0.52	0.47	0.45	0.50	0.53	0.59	0.61	0.58	0.57	0.57	0.57
Total asset turnover	0.54	0.60	0.64	0.57	0.52	0.61	0.56	0.53	0.45	0.35	0.34	0.33	0.36	0.39	0.43	0.44	0.42	0.40	0.40	0.39

The fixed asset turnover ratio for Nabors Industries Ltd has shown a positive trend over the past eight quarters, starting at 0.65 in Q1 2022 and increasing steadily to 1.04 in Q4 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has fluctuated over the same period, ranging from 0.44 in Q1 2022 to 0.67 in Q2 2023. This ratio measures the company's ability to generate sales from its total assets.

Overall, the increasing trend in fixed asset turnover suggests that Nabors Industries has been able to efficiently utilize its fixed assets to generate revenue. In contrast, the fluctuating total asset turnover ratio may indicate changes in the company's asset management efficiency. Further analysis of the company's operations and asset utilization strategies would be needed to draw more definitive conclusions about its long-term activity ratios.