Nabors Industries Ltd (NBR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,057,490 | 387,483 | 413,376 | 469,438 | 451,025 | 420,307 | 412,979 | 394,028 | 991,471 | 771,878 | 399,881 | 417,544 | 472,246 | 504,985 | 484,336 | 480,522 | 435,990 | 396,937 | 367,693 | 429,127 |
| Short-term investments | US$ in thousands | 12,691 | 19,160 | 15,683 | 6,294 | 1,290 | 4,763 | 4,999 | 11 | 17 | 6 | 16 | 17 | 9,500 | 8,840 | 9,942 | 9,136 | 16,506 | 22,000 | 28,023 | 40,590 |
| Receivables | US$ in thousands | 347,837 | 324,970 | 297,388 | 307,005 | 327,397 | 302,963 | 278,112 | 297,209 | 386,872 | 282,726 | 312,136 | 331,453 | 453,377 | 347,212 | 349,005 | 454,718 | 533,642 | 613,527 | 737,353 | 743,528 |
| 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 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates that the company has enough liquid assets to cover its current liabilities.
Analyzing Nabors Industries Ltd's quick ratio over the past eight quarters reveals some fluctuations but generally healthy liquidity positions. In Q4 2023, the quick ratio stood at 1.23, indicating that the company had $1.23 in liquid assets available to cover each dollar of current liabilities. While this ratio is slightly lower than the previous quarter, it still suggests a reasonable ability to meet short-term obligations.
Looking back over the past year, the quick ratio has ranged from 1.46 to 1.61, showing relatively consistent liquidity levels. These ratios demonstrate that Nabors Industries Ltd has maintained a strong ability to meet its current liabilities with its quick assets throughout the periods analyzed.
Overall, based on the trend and the absolute values of the quick ratio, Nabors Industries Ltd appears to have a healthy liquidity position, with sufficient liquid assets to cover its short-term obligations. However, it would be valuable to continue monitoring this ratio to ensure that the company can effectively manage its short-term financial commitments.
Peer comparison
Dec 31, 2023