Nabors Industries Ltd (NBR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 999,537 | 1,645,680 | 1,000,620 | 1,501,810 | 1,131,460 |
| Total current liabilities | US$ in thousands | 571,917 | 1,213,980 | 596,390 | 525,228 | 515,469 |
| Current ratio | 1.75 | 1.36 | 1.68 | 2.86 | 2.20 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $999,537K ÷ $571,917K
= 1.75
The current ratio of Nabors Industries Ltd has fluctuated over the past five years. Starting at 2.20 in December 31, 2020, the ratio improved to 2.86 by December 31, 2021, indicating a stronger ability to meet short-term liabilities with current assets. However, there was a notable decline in the ratio to 1.68 by December 31, 2022, which may raise concerns about the company's short-term liquidity position. This decline continued in the following years, with the ratio decreasing to 1.36 by December 31, 2023. Although there was a slight improvement to 1.75 by December 31, 2024, the ratio remains below the ideal 2.0, suggesting potential challenges in covering short-term obligations with current assets. Management may need to monitor and address factors impacting the company's liquidity position to ensure financial stability and meet its current obligations effectively.
Peer comparison
Dec 31, 2024