Nabors Industries Ltd (NBR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 247,927 | 252,721 | -110,830 | -342,175 | -542,081 |
| Long-term debt | US$ in thousands | 2,505,220 | 2,511,520 | 2,537,540 | 3,262,800 | 2,968,700 |
| Total stockholders’ equity | US$ in thousands | 134,996 | 326,614 | 368,956 | 590,656 | 1,151,380 |
| Return on total capital | 9.39% | 8.90% | -3.81% | -8.88% | -13.16% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $247,927K ÷ ($2,505,220K + $134,996K)
= 9.39%
Nabors Industries Ltd has shown a trend of improvement in its return on total capital over the past five years. The return on total capital was negative in December 31, 2020, and December 31, 2021, at -13.16% and -8.88% respectively. However, the company managed to reduce its negative returns, reaching -3.81% as of December 31, 2022.
In the following two years, the company experienced a significant turnaround, achieving positive returns. Specifically, the return on total capital stood at 8.90% as of December 31, 2023, further increasing to 9.39% by December 31, 2024. This demonstrates the company's efforts in efficiently utilizing its total capital to generate profits.
Overall, the upward trend in return on total capital indicates a positive trajectory for Nabors Industries Ltd, reflecting improved efficiency in capital management and potentially enhanced profitability for the company in the future.
Peer comparison
Dec 31, 2024