Nabors Industries Ltd (NBR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.59 | 26.17 | 27.06 | 27.21 | 26.52 | 25.80 | 27.12 | 26.42 | 24.65 | 26.48 | 26.21 | 30.49 | 30.76 | 39.78 | 45.41 | 47.19 | 36.04 | 28.30 | 25.00 | 23.36 |
| Days of sales outstanding (DSO) | days | 50.09 | 50.59 | 49.22 | 55.66 | 44.94 | 42.00 | 38.28 | 41.71 | 48.93 | 38.18 | 37.66 | 42.31 | 57.17 | 57.48 | 67.37 | 70.19 | 83.58 | 56.30 | 49.54 | 59.14 |
| Number of days of payables | days | 53.32 | 58.42 | 60.71 | 58.03 | 52.82 | 50.67 | 53.75 | 56.16 | 60.51 | 59.50 | 58.92 | 64.36 | 61.73 | 73.10 | 71.66 | 71.87 | 49.58 | 37.36 | 33.29 | 39.92 |
| Cash conversion cycle | days | 18.36 | 18.34 | 15.57 | 24.84 | 18.64 | 17.13 | 11.65 | 11.97 | 13.07 | 5.16 | 4.95 | 8.44 | 26.21 | 24.16 | 41.12 | 45.52 | 70.03 | 47.25 | 41.25 | 42.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.59 + 50.09 – 53.32
= 18.36
The cash conversion cycle of Nabors Industries Ltd has fluctuated over the periods mentioned in the data provided. It is calculated as the sum of days of inventory outstanding, days of sales outstanding, and days of payables outstanding. A lower cash conversion cycle indicates a more efficient management of working capital.
From March 31, 2020, to December 31, 2020, the cash conversion cycle increased significantly from 42.59 days to 70.03 days, indicating a potential slowdown in the conversion of inventory to cash. However, by March 31, 2021, there was a slight improvement as the cash conversion cycle decreased to 45.52 days.
Notably, the company managed to reduce its cash conversion cycle substantially by September 30, 2021, with only 24.16 days needed to convert various components to cash, showing more efficiency in working capital management. This trend continued positively until June 30, 2022, with a mere 4.95 days in the cash conversion cycle.
However, there was a slight increase in the cash conversion cycle by December 31, 2022, and fluctuations were observed through the coming periods until December 31, 2024, where the cycle stood at 18.36 days. Overall, the company exhibited periods of both efficient and inefficient working capital management throughout the data timeline.
Peer comparison
Dec 31, 2024