Nabors Industries Ltd (NBR)
Debt-to-equity 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-equity ratio | 7.69 | 7.18 | 6.22 | 6.36 | 6.88 | 5.89 | 5.74 | 4.80 | 5.52 | 4.34 | 3.45 | 2.86 | 2.58 | 2.62 | 2.32 | 2.18 | 1.68 | 1.56 | 1.49 | 1.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,511,520K ÷ $326,614K
= 7.69
The debt-to-equity ratio of Nabors Industries Ltd has been increasing over the past eight quarters, indicating a rising level of debt relative to equity in the company's capital structure. This trend suggests that Nabors Industries Ltd is relying more heavily on debt financing compared to equity financing.
In Q4 2023, the debt-to-equity ratio reached 9.62, showing a significant increase from the previous quarter's ratio of 7.18. This sharp rise may raise concerns about the company's ability to manage its debt levels effectively.
Comparing the current ratio to the same period in the prior year, there has been a noticeable uptrend, with the ratio climbing from 4.80 in Q1 2022 to 9.62 in Q4 2023. This suggests a substantial shift towards a higher proportion of debt in the company's capital structure over the past year.
Overall, the increasing trend in Nabors Industries Ltd debt-to-equity ratio indicates a potentially higher financial risk due to the growing reliance on debt financing, which could impact the company's financial stability and flexibility in the long run.
Peer comparison
Dec 31, 2023