Nabors Industries Ltd (NBR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 247,927 | 269,863 | 194,401 | -80,787 | -171,461 |
| Total assets | US$ in thousands | 4,504,300 | 5,277,960 | 4,729,850 | 5,525,360 | 5,503,430 |
| Operating ROA | 5.50% | 5.11% | 4.11% | -1.46% | -3.12% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $247,927K ÷ $4,504,300K
= 5.50%
Operating ROA measures the efficiency of Nabors Industries Ltd in generating operating profit from its assets. Looking at the trend over the years, we see a significant improvement in the company's performance.
In December 2020, the operating ROA was at a low of -3.12%, indicating that the company was not efficiently utilizing its assets to generate operating income. However, there has been a steady improvement since then. By December 2021, the operating ROA had improved to -1.46%, showing some progress.
In the following years, there was a notable turnaround in the company's performance. By December 2022, the operating ROA increased to 4.11%, reflecting a positive change in asset utilization efficiency. This trend continued to improve in December 2023, with the operating ROA reaching 5.11%, indicating a significant enhancement in profitability from assets.
The most recent data point in December 2024 shows a further improvement, with the operating ROA increasing to 5.50%. This demonstrates that Nabors Industries Ltd has been able to enhance its operational efficiency and generate more operating income from its assets.
Overall, the upward trend in operating ROA over the years signifies an improvement in the company's ability to generate operating profits relative to its asset base, indicating positive developments in its operational performance and efficiency.
Peer comparison
Dec 31, 2024