Nabors Industries Ltd (NBR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 252,721 | -110,830 | -342,175 | -542,081 | -406,998 |
| Long-term debt | US$ in thousands | 2,511,520 | 2,537,540 | 3,262,800 | 2,968,700 | 3,333,220 |
| Total stockholders’ equity | US$ in thousands | 326,614 | 368,956 | 590,656 | 1,151,380 | 1,982,810 |
| Return on total capital | 8.90% | -3.81% | -8.88% | -13.16% | -7.66% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $252,721K ÷ ($2,511,520K + $326,614K)
= 8.90%
Nabors Industries Ltd has demonstrated varying levels of return on total capital over the past five years. The return on total capital has exhibited an improving trend from negative figures in 2020 and 2021 to positive figures in 2022 and 2023. In 2023, the return on total capital stood at 7.78%, indicating that the company generated a return of 7.78% on its total invested capital during the year. This improvement suggests that Nabors Industries Ltd has been able to enhance its efficiency in generating returns from its total capital base. However, it is essential to continue monitoring this ratio to ensure sustained and positive performance.
Peer comparison
Dec 31, 2023