Nabors Industries Ltd (NBR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 25.45 | 26.92 | 26.52 | 25.73 |
| Days of sales outstanding (DSO) | days | 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 | 67.92 | 76.28 | 89.18 | 88.55 |
| Number of days of payables | days | 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 | 42.60 | 52.75 | 61.04 | 61.93 |
| Cash conversion cycle | days | 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 | 50.77 | 50.46 | 54.67 | 52.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.52 + 44.94 – 52.82
= 18.64
The cash conversion cycle of Nabors Industries Ltd has displayed fluctuations over the last eight quarters. In Q4 2023, the company's cash conversion cycle increased to 12.34 days from 10.78 days in the previous quarter, indicating a potential slowdown in the conversion of inputs into cash. This trend reversed the improvement observed in the two preceding quarters, where the cycle decreased from 5.98 days in Q2 2023 to 5.37 days in Q1 2023.
Comparing the latest quarter with the same period in the prior year, there has been a noticeable increase from 4.26 days in Q4 2022, suggesting a lengthening of the cycle over the period. Among the past eight quarters, the shortest cash conversion cycle was recorded in Q4 2022, at 4.26 days, while the longest cycle was observed in Q4 2023, at 12.34 days.
Overall, the analysis reveals variability in Nabors Industries Ltd's cash conversion cycle, with Q4 2023 showing an extended cycle compared to earlier quarters. This metric reflects the efficiency of the company's working capital management and provides insights into its ability to generate cash from its operations.
Peer comparison
Dec 31, 2023