Nabors Industries Ltd (NBR)
Working capital 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 |
| Total current assets | US$ in thousands | 999,537 | 1,645,680 | 1,000,620 | 1,501,810 | 1,131,460 |
| Total current liabilities | US$ in thousands | 571,917 | 1,213,980 | 596,390 | 525,228 | 515,469 |
| Working capital turnover | 6.73 | 6.60 | 5.86 | 2.53 | 4.22 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,877,660K ÷ ($999,537K – $571,917K)
= 6.73
The working capital turnover of Nabors Industries Ltd has shown a fluctuating trend over the past five years. In December 31, 2020, the working capital turnover was 4.22, indicating that the company generated $4.22 in revenue for every dollar of working capital invested.
However, in the following year, by December 31, 2021, the ratio decreased to 2.53, suggesting a decline in efficiency in utilizing working capital to generate revenue.
The subsequent years saw a significant improvement in the working capital turnover ratio. By December 31, 2022, the ratio increased to 5.86, signifying an enhanced ability to generate revenue from working capital. This positive trend continued as the ratio further improved to 6.60 by December 31, 2023, and 6.73 by December 31, 2024.
Overall, the increasing trend in the working capital turnover ratio from 2021 to 2024 indicates that Nabors Industries Ltd has been more effective in utilizing its working capital to drive revenue generation and improve operational efficiency during this period.
Peer comparison
Dec 31, 2024