Nabors Industries Ltd (NBR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.63% | 28.61% | 20.08% | 39.31% | 35.61% |
| Operating profit margin | 8.62% | 9.47% | 8.20% | -3.27% | -6.60% |
| Pretax margin | -4.14% | 2.37% | -12.18% | -20.78% | -28.81% |
| Net profit margin | -6.12% | -0.41% | -14.78% | -23.03% | -31.02% |
Nabors Industries Ltd has shown fluctuating profitability margins over the years based on the provided data. The gross profit margin has ranged from 20.08% in 2022 to 39.31% in 2021, indicating variability in the company's ability to generate profit from its core business activities.
Similarly, the operating profit margin has improved from negative percentages in 2020 and 2021 to positive figures in the subsequent years, reaching 8.62% in 2024. This suggests that the company has been able to better control its operating expenses and enhance efficiency in its operations.
The pretax margin has also displayed a mixed trend, moving from negative percentages in 2020 and 2021 to positive territory in 2023 before declining again in 2024. This indicates the company's ability to manage its pre-tax earnings relative to its total revenue.
In terms of net profit margin, Nabors Industries Ltd has reported negative margins in the years 2020 to 2024, with the lowest being -31.02% in 2020 and the highest at -0.41% in 2023. This suggests that after accounting for all expenses, including taxes, the company has struggled to generate net profits in recent years.
Overall, the company's profitability ratios reflect a mixed performance with improvements in certain margins but ongoing challenges in achieving consistent profitability. It would be important for management to continue focusing on cost control, operational efficiency, and strategic decision-making to enhance overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.50% | 5.11% | 4.11% | -1.46% | -3.12% |
| Return on assets (ROA) | -3.91% | -0.22% | -7.41% | -10.30% | -14.64% |
| Return on total capital | 9.39% | 8.90% | -3.81% | -8.88% | -13.16% |
| Return on equity (ROE) | -130.44% | -3.61% | -94.93% | -96.38% | -69.97% |
Nabors Industries Ltd's profitability ratios have shown varying trends over the past five years.
- Operating return on assets (Operating ROA) increased from -3.12% in 2020 to 5.50% in 2024, indicating a positive change in the company's ability to generate operating profits from its assets.
- Return on assets (ROA) fluctuated from -14.64% in 2020 to -3.91% in 2024, showing some improvement in profitability efficiency but remaining negative overall.
- Return on total capital decreased from -13.16% in 2020 to 9.39% in 2024, indicating a significant turnaround in utilizing total capital to generate profits.
- Return on equity (ROE) also varied, reaching a low of -130.44% in 2024 after being negative in the preceding years, suggesting challenges in generating returns for equity investors.
Overall, Nabors Industries Ltd has shown improvements in operating profitability and capital utilization, but challenges remain in generating returns for both asset and equity holders.