Nabors Industries Ltd (NBR)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.75 1.88 1.82 1.78 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
Quick ratio 1.37 1.48 1.43 1.40 1.17 1.38 1.33 1.45 1.31 1.30 1.33 1.35 2.62 2.04 1.35 1.53 1.81 1.77 1.61 1.61
Cash ratio 0.69 0.80 0.80 0.71 0.88 0.77 0.79 0.88 0.76 0.76 0.80 0.77 1.89 1.50 0.76 0.85 0.93 1.06 0.94 0.84

Nabors Industries Ltd's liquidity ratios have shown fluctuations over the past few years.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally been above 1, indicating a healthy liquidity position. However, there has been a gradual decline in the current ratio from 2.86 as of December 31, 2021, to 1.75 as of December 31, 2024. This downward trend suggests that the company may be less able to cover its short-term obligations with its current assets in recent years.

- The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also experienced fluctuations over the period. While the quick ratio has generally been above 1, indicating the company's ability to cover its immediate liabilities without relying on inventory, there have been declines in the quick ratio from 2.62 as of December 31, 2021, to 1.37 as of December 31, 2024. This trend suggests a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.

- The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents in relation to current liabilities, has shown a similar fluctuation pattern. The company's ability to cover its current liabilities with cash and cash equivalents has declined from 1.89 as of December 31, 2021, to 0.69 as of December 31, 2024. This trend indicates a potential decrease in the company's immediate ability to meet its obligations solely with readily available cash.

Overall, the liquidity ratios of Nabors Industries Ltd suggest a mixed picture, with some fluctuations indicating a potential decrease in the company's short-term liquidity position over the analyzed period. It would be essential for the company to closely monitor and manage its liquidity to ensure it can meet its financial obligations in a timely manner.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 18.36 18.34 15.57 24.84 18.64 17.13 11.65 11.97 13.07 5.16 4.95 8.44 26.21 24.16 41.12 45.52 70.03 47.25 41.25 42.59

The cash conversion cycle of Nabors Industries Ltd has exhibited some fluctuations over the specified time period. The period peaked at 70.03 days on December 31, 2020, reflecting a longer time taken to convert company resources into cash. However, this was followed by a significant improvement, with the cycle decreasing to 8.44 days by March 31, 2022.

Subsequently, the cycle remained relatively low, hovering between 4.95 and 24.84 days, indicating efficient management of working capital and the ability to swiftly convert inventory, accounts receivable, and accounts payable into cash. Overall, the trend suggests that Nabors Industries Ltd has made efforts to streamline its operations and optimize its cash flow cycle.