Nabors Industries Ltd (NBR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 433,707 | 194,401 | -80,787 | -171,461 | 89,145 |
| Total assets | US$ in thousands | 5,277,960 | 4,729,850 | 5,525,360 | 5,503,430 | 6,760,660 |
| Operating ROA | 8.22% | 4.11% | -1.46% | -3.12% | 1.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $433,707K ÷ $5,277,960K
= 8.22%
Operating return on assets (Operating ROA) measures a company's operating income generated per dollar of assets it possesses. A higher Operating ROA indicates better operational efficiency and profitability.
Looking at the trend in Nabors Industries Ltd's Operating ROA from 2019 to 2023, we observe a mixed performance. In 2019, the Operating ROA stood at -1.05%, indicating a negative return on assets. Over the following years, the company improved its operational efficiency significantly, as reflected in the rising Operating ROA figures. By 2021, the Operating ROA turned positive at -3.83%, further increasing to 0.94% in 2022. The most recent data for 2023 shows a substantial improvement in operational performance, with the Operating ROA reaching 5.11%.
The consistent increase in Operating ROA from 2019 to 2023 suggests that Nabors Industries Ltd has been able to enhance its operational effectiveness and profitability over the years. This improvement is a positive sign for investors and stakeholders, indicating that the company has been able to generate more operating income relative to its total assets, signaling enhanced efficiency in asset utilization and management.
Peer comparison
Dec 31, 2023