Nabors Industries Ltd (NBR)
Debt-to-equity 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-equity ratio | 18.56 | 13.08 | 10.04 | 8.77 | 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 |
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 past few years, indicating a growing reliance on debt financing compared to equity. As of December 31, 2024, the debt-to-equity ratio was at a significant level of 18.56, highlighting a high level of debt relative to equity in the company's capital structure.
This trend suggests that Nabors Industries Ltd may be taking on more debt to finance its operations, investments, or other financial obligations. A high debt-to-equity ratio can indicate increased financial risk, as the company may have higher interest payments and debt obligations to fulfill.
Investors and creditors may view a high debt-to-equity ratio as a potential red flag, as it could signal financial distress or difficulties in meeting debt obligations. It is important for the company to carefully manage its debt levels and ensure that its operations generate sufficient cash flow to cover its debt payments.
Overall, the increasing trend in Nabors Industries Ltd's debt-to-equity ratio warrants further analysis of the company's debt management strategies and financial health.
Peer comparison
Dec 31, 2024