Nabors Industries Ltd (NBR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -11,784 | -350,261 | -569,272 | -805,641 | -702,885 |
| Total stockholders’ equity | US$ in thousands | 326,614 | 368,956 | 590,656 | 1,151,380 | 1,982,810 |
| ROE | -3.61% | -94.93% | -96.38% | -69.97% | -35.45% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-11,784K ÷ $326,614K
= -3.61%
Nabors Industries Ltd's return on equity (ROE) has displayed significant fluctuations over the past five years. The ROE deteriorated from -36.34% in 2019 to -72.77% in 2020 before witnessing a further decline to -95.40% in 2021. The negative trend continued in 2022 and 2023, with ROE values plummeting to -97.73% and -15.38%, respectively.
Such consistently negative ROE figures indicate that the company's net income is insufficient to generate a positive return for its shareholders in relation to their equity investment. This could be a result of various factors such as declining profitability, high debt levels, or inefficient use of assets. Analyzing the reasons behind this downward trend in ROE is crucial for stakeholders to assess the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2023