Nabors Industries Ltd (NBR)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.95 | 0.93 | 0.91 | 0.90 | 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 |
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 gradual increase over the past few years, starting from 0.69 as of March 31, 2020, and reaching 0.95 by December 31, 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 the company relies more on debt financing than equity financing, which can indicate increased financial risk. It also implies that a larger portion of the company's capital structure is made up of debt rather than equity.
The rising trend in the debt-to-capital ratio could potentially be a concern for investors and creditors as it may indicate a higher level of leverage, leading to increased interest expenses and financial risk. It is important for the company to carefully manage its debt levels to ensure financial stability and maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024