Nabors Industries Ltd (NBR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,645,680 | 1,000,620 | 1,501,810 | 1,131,460 | 1,248,670 |
| Total current liabilities | US$ in thousands | 1,213,980 | 596,390 | 525,228 | 515,469 | 656,548 |
| Current ratio | 1.36 | 1.68 | 2.86 | 2.20 | 1.90 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,645,680K ÷ $1,213,980K
= 1.36
The current ratio of Nabors Industries Ltd has exhibited fluctuations over the past five years. In 2023, the current ratio stands at 1.36, indicating a slight decrease compared to the previous year's ratio of 1.68. This downward trend suggests that the company may have relatively fewer current assets to cover its current liabilities in the most recent year.
Furthermore, when compared to the ratios in 2021, 2020, and 2019, which were 2.89, 2.20, and 1.90 respectively, the current ratio has shown significant variability. The notable decrease in the current ratio from 2021 to 2022 and another decrease in 2023 signal potential liquidity challenges or changes in the company's working capital management.
Overall, the declining trend in the current ratio over the years may raise concerns about the company's short-term liquidity position and ability to meet its short-term obligations with current assets. Further analysis and investigation into the factors contributing to this trend are warranted to understand the underlying causes and implications for the company's financial health.
Peer comparison
Dec 31, 2023