Nabors Industries Ltd (NBR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -176,084 | -11,784 | -350,261 | -569,272 | -805,641 |
| Total stockholders’ equity | US$ in thousands | 134,996 | 326,614 | 368,956 | 590,656 | 1,151,380 |
| ROE | -130.44% | -3.61% | -94.93% | -96.38% | -69.97% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-176,084K ÷ $134,996K
= -130.44%
Nabors Industries Ltd's return on equity (ROE) has shown significant fluctuations over the years. In December 2020, the ROE was recorded at -69.97%, indicating that the company's net income was insufficient to generate a positive return for its shareholders. This negative trend worsened in the subsequent years, with ROE sinking to -96.38% in 2021 and further decreasing to -94.93% in 2022. These consecutive years of declining ROE suggest challenges in the company's profitability and efficiency in utilizing shareholder equity.
However, the year 2023 saw a notable improvement in ROE, with the ratio turning positive at -3.61%. This could indicate some progress in profitability, although the company still failed to generate a sufficient return on equity. Nevertheless, this positive shift may point towards some efforts to enhance operational performance and financial management.
Unfortunately, in December 2024, the ROE significantly deteriorated to -130.44%, marking a substantial regression from the slight improvement seen in the previous year. This sharp decline raises concerns about the company's ability to effectively utilize shareholder equity to generate returns.
Overall, Nabors Industries Ltd's ROE analysis reflects a volatile performance, with persistent negative returns in most years. The company appears to face challenges in profitability and efficiency, highlighting the need for strategic measures to enhance financial performance and create value for shareholders.
Peer comparison
Dec 31, 2024