Nabors Industries Ltd (NBR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,057,490 | 451,025 | 991,471 | 472,246 | 435,990 |
| Short-term investments | US$ in thousands | 12,691 | 1,290 | 17 | 9,500 | 16,506 |
| Receivables | US$ in thousands | 347,837 | 327,397 | 386,872 | 453,377 | 533,642 |
| Total current liabilities | US$ in thousands | 1,213,980 | 596,390 | 525,228 | 515,469 | 656,548 |
| Quick ratio | 1.17 | 1.31 | 2.62 | 1.81 | 1.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,057,490K
+ $12,691K
+ $347,837K)
÷ $1,213,980K
= 1.17
The quick ratio of Nabors Industries Ltd has shown fluctuations over the past five years. The quick ratio was relatively high in 2021 at 2.62, indicating a strong ability to cover short-term liabilities with quick assets. However, there was a significant decrease in 2022 to 1.46, suggesting a potential liquidity strain.
In 2023, the quick ratio further declined to 1.23, nearing the 2020 level of 1.85. This may indicate a slight weakening in the company's liquidity position compared to the previous year. The quick ratio in 2019 was 1.63, falling between the levels seen in 2020 and 2023.
Overall, while the quick ratio of Nabors Industries Ltd has fluctuated over the years, it generally indicates a reasonable ability to meet short-term obligations with liquid assets. However, a trend of decreasing quick ratios in recent years may warrant further monitoring to ensure sustained liquidity levels.
Peer comparison
Dec 31, 2023