Nabors Industries Ltd (NBR)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,827,277 | 2,775,554 | 2,732,938 | 2,733,763 | 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 |
| Total current assets | US$ in thousands | 999,537 | 1,072,320 | 1,077,790 | 1,074,360 | 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 |
| Total current liabilities | US$ in thousands | 571,917 | 571,578 | 590,922 | 602,418 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,827,277K ÷ ($999,537K – $571,917K)
= 6.61
The working capital turnover ratio for Nabors Industries Ltd experienced fluctuations over the analyzed periods. The ratio measures how effectively the company utilizes its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2020, the working capital turnover decreased from 4.09 to 3.21, indicating a decline in the company's ability to efficiently convert its working capital into sales. This trend continued with a further decrease to 2.23 by September 30, 2021, reflecting potential inefficiencies in managing and utilizing its working capital.
However, the company showed an improvement in its working capital turnover ratio from March 31, 2022, onwards. The ratio increased significantly, reaching a peak of 7.12 by September 30, 2022, indicating a more efficient utilization of working capital to generate sales revenue.
Subsequently, the working capital turnover ratio remained relatively stable between 5.61 and 6.61 from June 30, 2024, to December 31, 2024, reflecting consistency in the company's working capital management efficiency.
Overall, the fluctuating trend in Nabors Industries Ltd's working capital turnover ratio suggests varying degrees of effectiveness in utilizing its working capital to support its business operations and generate sales revenue during the analyzed periods.
Peer comparison
Dec 31, 2024