Nabors Industries Ltd (NBR)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,824,854 | 2,824,158 | 2,835,559 | 2,686,524 | 2,442,417 | 2,896,069 | 2,695,320 | 2,563,727 | 2,469,769 | 1,795,405 | 1,690,978 | 1,723,505 | 1,980,035 | 2,250,900 | 2,571,586 | 2,806,404 | 2,867,832 | 2,935,651 | 3,017,736 | 3,064,840 |
| Total current assets | US$ in thousands | 1,645,680 | 960,554 | 978,134 | 1,013,240 | 1,000,620 | 965,906 | 923,380 | 944,068 | 1,501,810 | 1,322,630 | 1,087,140 | 1,036,030 | 1,131,460 | 1,163,010 | 1,152,920 | 1,270,840 | 1,248,670 | 1,380,350 | 1,466,680 | 1,555,900 |
| Total current liabilities | US$ in thousands | 1,213,980 | 528,703 | 544,265 | 540,478 | 596,390 | 559,166 | 524,058 | 513,445 | 525,228 | 516,088 | 529,116 | 490,797 | 515,469 | 486,018 | 523,690 | 584,870 | 656,548 | 682,304 | 772,167 | 735,802 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,824,854K ÷ ($1,645,680K – $1,213,980K)
= 6.54
Working capital turnover is a financial ratio that measures a company's efficiency in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio generally indicates that the company is effectively managing its working capital to generate higher sales.
Analyzing Nabors Industries Ltd's working capital turnover based on the provided data shows that the ratio has been fluctuating over the past eight quarters. In Q4 2023, the working capital turnover was 6.96, which was slightly lower than the previous quarter but higher than the same quarter in the previous year.
The trend over the past two years indicates an overall improvement in the company's efficiency in utilizing its working capital to generate sales. The working capital turnover ratio has been on an upward trajectory since Q1 2022, reaching a peak of 7.04 in Q3 2023.
The company's ability to maintain a relatively high working capital turnover ratio suggests that it is effectively managing its current assets and liabilities to support its sales operations. However, the slight fluctuations in the ratio indicate that there may be variations in the company's working capital management efficiency from quarter to quarter.
Overall, the trend in Nabors Industries Ltd's working capital turnover ratio reflects a generally positive outlook on the company's operational efficiency and effectiveness in utilizing its working capital resources.
Peer comparison
Dec 31, 2023