Nabors Industries Ltd (NBR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,504,300 | 5,277,960 | 4,729,850 | 5,525,360 | 5,503,430 |
| Total stockholders’ equity | US$ in thousands | 134,996 | 326,614 | 368,956 | 590,656 | 1,151,380 |
| Financial leverage ratio | 33.37 | 16.16 | 12.82 | 9.35 | 4.78 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,504,300K ÷ $134,996K
= 33.37
The financial leverage ratio of Nabors Industries Ltd has shown a significant increase over the years, indicating a higher level of financial risk and dependency on debt. Starting at 4.78 in December 2020, the ratio increased to 9.35 in December 2021, further rising to 12.82 in December 2022, and 16.16 in December 2023. The most notable increase was seen in December 2024, reaching 33.37.
This trend suggests that the company has been relying more heavily on debt to finance its operations and expansion, which can lead to increased financial vulnerability during economic downturns or periods of high-interest rates. Investors and analysts may view this escalating leverage ratio as a cause for concern regarding the company's ability to meet its debt obligations in the long term. Monitoring the trend of this ratio will be crucial for assessing the company's financial health and risk profile going forward.
Peer comparison
Dec 31, 2024