Nabors Industries Ltd (NBR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 175,910 | 291,373 | 191,144 | 167,431 | 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 |
| Long-term debt | US$ in thousands | 2,505,220 | 2,503,270 | 2,514,170 | 2,512,180 | 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 |
| Total stockholders’ equity | US$ in thousands | 134,996 | 191,363 | 250,371 | 286,338 | 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 |
| Return on total capital | 6.66% | 10.81% | 6.91% | 5.98% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $175,910K ÷ ($2,505,220K + $134,996K)
= 6.66%
Nabors Industries Ltd's return on total capital has shown a varying trend over the analyzed periods. The ratio was negative throughout most of 2020 and 2021, indicating that the company was not generating adequate returns on the total capital invested. However, starting from the first quarter of 2023, there was a noticeable improvement in the return on total capital, turning positive and increasing steadily until the end of 2024.
This positive trend suggests that Nabors Industries Ltd began effectively utilizing its total capital to generate higher returns for its stakeholders. The sharp increase in the return on total capital from the first quarter of 2023 to the third quarter of 2024 indicates a significant improvement in the company's operational efficiency and profitability.
Overall, the upward trajectory in the return on total capital reflects positively on Nabors Industries Ltd's ability to enhance its financial performance and generate better returns on the total capital employed in its operations.
Peer comparison
Dec 31, 2024