Nabors Industries Ltd (NBR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,849,710 | 2,370,550 | 2,472,160 | 2,597,540 | 3,502,510 |
| Receivables | US$ in thousands | 347,837 | 327,397 | 386,872 | 453,377 | 533,642 |
| Receivables turnover | 8.19 | 7.24 | 6.39 | 5.73 | 6.56 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,849,710K ÷ $347,837K
= 8.19
The receivables turnover of Nabors Industries Ltd has shown a general upward trend over the past five years, indicating an improvement in the efficiency of the company in collecting receivables from its customers.
In 2023, the receivables turnover ratio reached 8.64, showing that the company was able to collect its accounts receivable approximately 8.64 times during the year. This represents an increase from the previous year's ratio of 8.11.
Comparing to earlier years, the trend reveals a significant improvement in receivables turnover from 2019 to 2023. This indicates that Nabors Industries Ltd has been more effective in managing its receivables and collecting payments in a timely manner over the years.
A higher receivables turnover ratio signifies a quicker conversion of receivables into cash, which can be a positive indication of the company's liquidity and operational efficiency. However, it is important to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall performance and financial health.
Peer comparison
Dec 31, 2023