Nabors Industries Ltd (NBR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 16.91 | 13.95 | 13.49 | 13.41 | 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 |
| Receivables turnover | 7.29 | 7.21 | 7.42 | 6.56 | 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 |
| 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 |
| Working capital turnover | 6.61 | 5.54 | 5.61 | 5.79 | 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 |
Nabors Industries Ltd's activity ratios provide insights into the efficiency with which the company manages its operational resources.
1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory within a given period. Nabors Industries' inventory turnover has gradually decreased from 15.62 in March 2020 to 16.91 in December 2024. This suggests that the company is taking longer to sell its inventory in recent periods.
2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects payments from its customers. Nabors Industries' receivables turnover has fluctuated over the years, ranging from 4.37 in December 2020 to 9.69 in June 2022. The company showed an improvement in collecting receivables before declining in the latter periods.
3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. Nabors Industries' payables turnover has been relatively stable, hovering around 5 to 7 times per year. A higher turnover ratio indicates that the company is paying its payables more frequently.
4. Working Capital Turnover: This ratio shows how effectively a company utilizes its working capital to generate sales. Nabors Industries' working capital turnover has varied significantly, with a notable increase from 2.23 in September 2021 to 7.12 in September 2022. The fluctuations suggest changes in the company's efficiency in utilizing working capital.
Overall, analyzing these activity ratios can help assess Nabors Industries Ltd's operational efficiency and identify areas for improvement in managing inventory, receivables, payables, and working capital turnover.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.59 | 26.17 | 27.06 | 27.21 | 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 |
| Days of sales outstanding (DSO) | days | 50.09 | 50.59 | 49.22 | 55.66 | 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 |
| Number of days of payables | days | 53.32 | 58.42 | 60.71 | 58.03 | 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 |
The activity ratios of Nabors Industries Ltd over the past few years show fluctuations in efficiency in managing its operations.
1. Days of Inventory on Hand (DOH): This ratio indicates how quickly inventory is sold or used. Nabors Industries Ltd started with 23.36 days of inventory on hand as of March 31, 2020, and this ratio increased over time before fluctuating. The company managed to reduce its inventory holding period by the end of December 2024, indicating improved efficiency in inventory management.
2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes a company to collect revenue after a sale has been made. Nabors' DSO varied significantly over the years, showing some inconsistency in its accounts receivable collection efforts. The company saw a decrease in DSO by the end of December 2024 compared to the peak seen in December 2020, signaling a positive trend in receivables management.
3. Number of Days of Payables: This ratio represents how long a company takes to pay its suppliers. The trend for Nabors Industries Ltd shows fluctuations in the number of days of payables over the years. The company managed to reduce its payment period by the end of December 2024 compared to the peak in March 2021, suggesting improved efficiency in managing payables.
In conclusion, while there have been fluctuations in activity ratios over the years, there are signs of improvement in inventory management, accounts receivable collection, and payables management for Nabors Industries Ltd, which is a positive indication of its operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.00 | 1.00 | 0.97 | 0.96 | 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 |
| Total asset turnover | 0.63 | 0.61 | 0.59 | 0.59 | 0.54 | 0.60 | 0.64 | 0.51 | 0.52 | 0.61 | 0.56 | 0.53 | 0.45 | 0.35 | 0.34 | 0.33 | 0.36 | 0.39 | 0.43 | 0.44 |
Nabors Industries Ltd's fixed asset turnover ratio has shown a fluctuating trend over the past few years, starting at 0.61 in March 2020, decreasing to 0.45 in March 2021, and then gradually increasing to 1.00 by December 2024. This indicates that the company has become more efficient in generating revenue from its fixed assets over the period.
In contrast, the total asset turnover ratio has been relatively stable, with some fluctuations between 0.33 and 0.64. The ratio increased from 0.44 in March 2020 to 0.61 in September 2022, before slightly decreasing to 0.63 by December 2024. This suggests that the company has been effectively utilizing its total assets to generate sales.
Overall, the improvement in the fixed asset turnover ratio coupled with the stable total asset turnover ratio indicates that Nabors Industries Ltd has been optimizing its asset utilization and operational efficiency over the years, which could potentially lead to improved profitability and financial performance in the long term.