Nabors Industries Ltd (NBR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 389,652 | 1,057,490 | 451,025 | 991,471 | 472,246 |
| Short-term investments | US$ in thousands | 7,647 | 12,691 | 1,290 | 17 | 9,500 |
| Total current liabilities | US$ in thousands | 571,917 | 1,213,980 | 596,390 | 525,228 | 515,469 |
| Cash ratio | 0.69 | 0.88 | 0.76 | 1.89 | 0.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($389,652K
+ $7,647K)
÷ $571,917K
= 0.69
The cash ratio of Nabors Industries Ltd has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.93, indicating that the company had $0.93 in cash and cash equivalents for every $1 of current liabilities.
By December 31, 2021, the cash ratio improved to 1.89, suggesting the company had significantly increased its liquidity position, with $1.89 in cash for every $1 of current liabilities. This indicates improved financial health and liquidity management.
However, by December 31, 2022, the cash ratio decreased to 0.76, signaling a reduction in the company's ability to cover its short-term obligations with cash on hand. This could be a cause for concern as it may indicate potential liquidity challenges for the company.
The cash ratio improved slightly to 0.88 by December 31, 2023, but remained below the ideal ratio of 1, indicating that the company may still have limited ability to meet its short-term liabilities solely from its cash reserves.
Finally, as of December 31, 2024, the cash ratio further declined to 0.69, suggesting a continued decrease in the company's liquidity position and potential challenges in meeting short-term obligations with available cash.
Overall, the fluctuating cash ratio of Nabors Industries Ltd highlights the importance of closely monitoring liquidity levels and managing cash reserves effectively to ensure the company can meet its short-term financial obligations in a sustainable manner.
Peer comparison
Dec 31, 2024