Nabors Industries Ltd (NBR)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 252,721 | 201,582 | 238,353 | 130,465 | -110,830 | -162,884 | -282,793 | -381,704 | -342,175 | -312,913 | -344,171 | -307,055 | -542,081 | -707,660 | -642,637 | -690,852 | -406,998 | -327,697 | -336,636 | -310,843 |
| Long-term debt | US$ in thousands | 2,511,520 | 2,501,340 | 2,503,250 | 2,562,330 | 2,537,540 | 2,585,520 | 2,601,510 | 2,610,090 | 3,262,800 | 3,075,520 | 2,823,120 | 2,898,880 | 2,968,700 | 3,290,300 | 3,276,100 | 3,388,010 | 3,333,220 | 3,516,590 | 3,550,580 | 3,677,580 |
| Total stockholders’ equity | US$ in thousands | 326,614 | 348,234 | 402,650 | 402,711 | 368,956 | 439,241 | 453,200 | 543,616 | 590,656 | 709,021 | 818,919 | 1,013,750 | 1,151,380 | 1,255,650 | 1,413,150 | 1,555,920 | 1,982,810 | 2,251,700 | 2,381,510 | 2,586,340 |
| Return on total capital | 8.90% | 7.07% | 8.20% | 4.40% | -3.81% | -5.39% | -9.26% | -12.10% | -8.88% | -8.27% | -9.45% | -7.85% | -13.16% | -15.57% | -13.70% | -13.97% | -7.66% | -5.68% | -5.67% | -4.96% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $252,721K ÷ ($2,511,520K + $326,614K)
= 8.90%
Nabors Industries Ltd's return on total capital has shown fluctuations over the past quarters. In Q4 2023, the return on total capital was 7.78%, a decrease from the previous quarter. Despite the decrease, it remained above 5%, indicating a relatively positive performance in utilizing its total capital effectively to generate profits. The company experienced a significant improvement in Q3 2023 with a return on total capital of 9.20%, the highest among the reported quarters, reflecting strong capital efficiency during that period.
In the preceding quarters of 2023, the return on total capital ranged between 5.23% and 8.07%, demonstrating some variability in the company's ability to generate returns relative to its total capital. Comparing to the same quarters in 2022, Nabors Industries Ltd showed a clear improvement in Q4 2023, with a notable positive shift from a negative return on total capital.
Overall, while the return on total capital for Nabors Industries Ltd has shown fluctuations, the company managed to maintain a positive trend in utilizing its capital effectively to generate returns, with a notable improvement in the latest reporting period.
Peer comparison
Dec 31, 2023