Nabors Industries Ltd (NBR)
Debt-to-equity 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-equity ratio | 18.56 | 7.69 | 6.88 | 5.52 | 2.58 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,505,220K ÷ $134,996K
= 18.56
The debt-to-equity ratio of Nabors Industries Ltd has been increasing steadily over the years from 2.58 in December 2020 to 18.56 in December 2024. This indicates a substantial shift towards a higher reliance on debt financing compared to equity. A rising debt-to-equity ratio could suggest that the company is taking on more debt to finance its operations and growth, which may indicate potential financial risk and increased financial leverage. It is important for stakeholders to closely monitor this trend to assess the company's ability to manage its debt obligations effectively and maintain a healthy balance sheet.
Peer comparison
Dec 31, 2024