Nabors Industries Ltd (NBR)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,645,680 | 960,554 | 978,134 | 1,013,240 | 1,000,620 | 965,906 | 923,380 | 944,068 | 1,501,810 | 1,322,630 | 1,087,140 | 1,036,030 | 1,131,460 | 1,163,010 | 1,152,920 | 1,270,840 | 1,248,670 | 1,380,350 | 1,466,680 | 1,555,900 |
| Total current liabilities | US$ in thousands | 1,213,980 | 528,703 | 544,265 | 540,478 | 596,390 | 559,166 | 524,058 | 513,445 | 525,228 | 516,088 | 529,116 | 490,797 | 515,469 | 486,018 | 523,690 | 584,870 | 656,548 | 682,304 | 772,167 | 735,802 |
| Current ratio | 1.36 | 1.82 | 1.80 | 1.87 | 1.68 | 1.73 | 1.76 | 1.84 | 2.86 | 2.56 | 2.05 | 2.11 | 2.20 | 2.39 | 2.20 | 2.17 | 1.90 | 2.02 | 1.90 | 2.11 |
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 shown fluctuation over the past eight quarters, ranging from a low of 1.36 in Q4 2023 to a high of 1.87 in Q1 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates the company has more current assets than current liabilities.
The decreasing trend from Q1 2023 to Q4 2023 suggests a potential weakening in Nabors Industries Ltd's short-term liquidity position. A current ratio below 2 may indicate a higher risk of liquidity issues, although the company has generally maintained ratios above 1.5, which is considered acceptable in most industries.
It is essential for the company to closely monitor its current ratio to ensure it can meet its short-term obligations efficiently. Further analysis of the composition of current assets and liabilities will provide a clearer picture of the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023