Nabors Industries Ltd (NBR)

Liquidity ratios

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
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
Quick ratio 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 1.50 1.51 1.47 1.65
Cash ratio 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 0.69 0.61 0.51 0.64

The liquidity ratios of Nabors Industries Ltd, as depicted by the current ratio, quick ratio, and cash ratio over the eight quarters provided, show fluctuations in the company's ability to meet its short-term financial obligations.

The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has shown variability, ranging from a low of 1.36 to a high of 1.87. While the ratios generally stayed above 1, indicating a sufficient level of liquidity, there was a downward trend in recent quarters which may suggest a potential strain on the company's liquidity position.

The quick ratio, considered a more stringent measure of liquidity as it excludes inventory from current assets, also demonstrated fluctuations but generally remained above 1. This indicates that Nabors Industries has enough liquid assets to cover its short-term obligations without relying on inventory, although there was a slight decline in the ratio over the quarters.

The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities, showed a mixed trend. Although the ratios mostly remained above 0.9, there were slight fluctuations over the quarters, with Q1 2023 and Q2 2022 showing the highest and lowest values, respectively.

Overall, while Nabors Industries generally maintained adequate liquidity levels to meet its short-term obligations, the downward trends in the current ratio and slight fluctuations in the quick and cash ratios may require further monitoring to ensure the company's financial stability and ability to handle upcoming financial obligations.

Additional liquidity measure

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
Cash conversion cycle days 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 50.77 50.46 54.67 52.36

The cash conversion cycle of Nabors Industries Ltd has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 12.34 days compared to the previous quarter of 10.78 days. This indicates a slowdown in the company's ability to convert its investments in inventory and accounts receivable into cash.

Looking back further, Q3 and Q2 2023 saw a decreasing trend in the cash conversion cycle, which dropped to 10.78 days and 5.98 days, respectively. This improvement suggests that the company was managing its inventory and receivables more efficiently during those quarters.

Q1 2023 recorded a further decrease in the cash conversion cycle to 5.37 days, showing the company's ability to convert its resources into cash at a faster rate. Comparing this with Q4 2022, which had a cash conversion cycle of 4.26 days, there was a slight deterioration in Q1 2023.

Overall, the cash conversion cycle of Nabors Industries Ltd has varied throughout the quarters, with some periods showing more efficient management of working capital than others. This metric is essential for assessing the company's operational efficiency and overall financial health.