Nabors Industries Ltd (NBR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,057,490 | 451,025 | 991,471 | 472,246 | 435,990 |
| Short-term investments | US$ in thousands | 12,691 | 1,290 | 17 | 9,500 | 16,506 |
| Total current liabilities | US$ in thousands | 1,213,980 | 596,390 | 525,228 | 515,469 | 656,548 |
| Cash ratio | 0.88 | 0.76 | 1.89 | 0.93 | 0.69 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,057,490K
+ $12,691K)
÷ $1,213,980K
= 0.88
The cash ratio of Nabors Industries Ltd fluctuated over the past five years. In 2023, the cash ratio was 0.95, indicating that the company had $0.95 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company's liquidity position slightly improved compared to 2022 when the ratio was 0.91.
In 2021, the cash ratio was notably higher at 2.07, indicating a significant increase in liquidity compared to the previous years. This suggests that Nabors Industries had improved its ability to cover its short-term obligations with cash and cash equivalents.
The cash ratio decreased in 2020 to 1.15 but remained above 1, indicating that the company still had more than enough cash to cover its current liabilities.
In 2019, the cash ratio was 0.94, showing a slight decrease in liquidity compared to 2020. Overall, the trend in the cash ratio suggests that Nabors Industries Ltd has managed its liquidity well over the years, with fluctuations reflecting changes in cash holdings and current liabilities.
Peer comparison
Dec 31, 2023