Nabors Industries Ltd (NBR)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.88 | 0.88 | 0.86 | 0.86 | 0.87 | 0.85 | 0.85 | 0.83 | 0.85 | 0.81 | 0.78 | 0.74 | 0.72 | 0.72 | 0.70 | 0.69 | 0.63 | 0.61 | 0.60 | 0.59 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,511,520K ÷ ($2,511,520K + $326,614K)
= 0.88
The debt-to-capital ratio of Nabors Industries Ltd has been relatively stable over the past eight quarters, ranging from 0.83 to 0.91. This ratio indicates the proportion of the company's capital that is financed by debt. A higher ratio suggests that the company relies more on debt to finance its operations and investments, which can increase financial risk.
In the case of Nabors Industries Ltd, the trend in the debt-to-capital ratio shows a slight increase in the most recent quarter, reaching 0.91, which may indicate a higher level of debt relative to the total capital employed. However, the overall range of ratios between 0.83 and 0.91 suggests that the company has maintained a relatively consistent capital structure over the past two years.
It is essential for investors and stakeholders to monitor this ratio over time to assess the company's financial leverage and risk management strategies. Additionally, comparing Nabors Industries Ltd's debt-to-capital ratio with industry peers can provide further insights into its financial health and performance relative to competitors.
Peer comparison
Dec 31, 2023