Nabors Industries Ltd (NBR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,877,660 | 2,849,710 | 2,370,550 | 2,472,160 | 2,597,540 |
| Receivables | US$ in thousands | 387,970 | 347,837 | 327,397 | 386,872 | 453,377 |
| Receivables turnover | 7.42 | 8.19 | 7.24 | 6.39 | 5.73 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,877,660K ÷ $387,970K
= 7.42
Based on the data provided, the receivables turnover for Nabors Industries Ltd has shown an increasing trend over the years. The turnover ratio has increased from 5.73 in December 31, 2020, to 7.42 in December 31, 2024.
This indicates that the company is collecting its accounts receivables more efficiently, as a higher turnover ratio suggests that the company is able to collect outstanding receivables more quickly.
The steady increase in the receivables turnover ratio indicates that the company has been effective in managing its receivables and converting them into cash, which is a positive sign for the company's liquidity and financial health.
A higher receivables turnover ratio could also suggest that the company has stringent credit policies in place, leading to timely collections and reduced credit risks.
Overall, the improving trend in the receivables turnover ratio for Nabors Industries Ltd reflects positively on the company's operational efficiency in managing its accounts receivables.
Peer comparison
Dec 31, 2024