Nabors Industries Ltd (NBR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 389,652 | 1,057,490 | 451,025 | 991,471 | 472,246 |
| Short-term investments | US$ in thousands | 7,647 | 12,691 | 1,290 | 17 | 9,500 |
| Receivables | US$ in thousands | 387,970 | 347,837 | 327,397 | 386,872 | 453,377 |
| Total current liabilities | US$ in thousands | 571,917 | 1,213,980 | 596,390 | 525,228 | 515,469 |
| Quick ratio | 1.37 | 1.17 | 1.31 | 2.62 | 1.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($389,652K
+ $7,647K
+ $387,970K)
÷ $571,917K
= 1.37
The quick ratio of Nabors Industries Ltd has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 1.81, indicating that the company had $1.81 in liquid assets available to cover each $1 of current liabilities. The ratio improved significantly to 2.62 by December 31, 2021, suggesting a stronger liquidity position. However, there was a notable decline in the quick ratio to 1.31 by December 31, 2022, which could signal potential challenges in meeting short-term obligations using only quick assets.
Furthermore, the quick ratio further decreased to 1.17 by December 31, 2023, indicating a potential strain on the company's ability to cover immediate liabilities with liquid assets. Despite the decline, the ratio slightly recovered to 1.37 by December 31, 2024, although it still remains below the levels seen in earlier years.
Overall, the fluctuating trend in Nabors Industries Ltd's quick ratio highlights the importance of monitoring liquidity management and ensuring the company maintains an adequate level of quick assets to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024