Nabors Industries Ltd (NBR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 134,996 | 326,614 | 368,956 | 590,656 | 1,151,380 |
| Debt-to-capital ratio | 0.95 | 0.88 | 0.87 | 0.85 | 0.72 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,505,220K ÷ ($2,505,220K + $134,996K)
= 0.95
The debt-to-capital ratio of Nabors Industries Ltd has been showing a consistent upward trend over the past five years, increasing from 0.72 in December 2020 to 0.95 in December 2024. This indicates that the company's level of debt relative to its total capital has been increasing steadily over the years. A higher debt-to-capital ratio suggests that a larger portion of the company's capital structure is funded by debt rather than equity. This can potentially expose the company to higher financial risk, particularly in times of economic downturn or rising interest rates. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2024