Nabors Industries Ltd (NBR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,505,220 | 2,511,520 | 2,537,540 | 3,262,800 | 2,968,700 |
| Total assets | US$ in thousands | 4,504,300 | 5,277,960 | 4,729,850 | 5,525,360 | 5,503,430 |
| Debt-to-assets ratio | 0.56 | 0.48 | 0.54 | 0.59 | 0.54 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,505,220K ÷ $4,504,300K
= 0.56
The debt-to-assets ratio of Nabors Industries Ltd has shown some fluctuations over the past five years. As of December 31, 2020, the ratio was 0.54, indicating that 54% of the company's assets were financed through debt. By the end of 2021, the ratio had increased to 0.59, suggesting a higher reliance on debt financing compared to the previous year.
However, in 2022, the debt-to-assets ratio decreased back to 0.54, which was the same as in 2020. This stabilization may indicate a more conservative approach to leverage by the company during that period. Subsequently, by December 31, 2023, the ratio further declined to 0.48, reflecting a reduction in the proportion of assets financed by debt.
Nonetheless, in 2024, the debt-to-assets ratio rose to 0.56, indicating a slight increase in leverage compared to the previous year. Overall, these fluctuations in the debt-to-assets ratio of Nabors Industries Ltd suggest varying levels of debt utilization and financial risk management by the company over the five-year period.
Peer comparison
Dec 31, 2024