Nabors Industries Ltd (NBR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,277,960 | 4,726,850 | 4,463,270 | 4,699,980 | 4,729,850 | 4,768,560 | 4,800,980 | 4,857,170 | 5,525,360 | 5,174,830 | 5,042,320 | 5,254,910 | 5,503,430 | 5,817,310 | 5,982,420 | 6,308,550 | 6,760,660 | 7,273,500 | 7,514,500 | 7,773,680 |
| 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 |
| Financial leverage ratio | 16.16 | 13.57 | 11.08 | 11.67 | 12.82 | 10.86 | 10.59 | 8.93 | 9.35 | 7.30 | 6.16 | 5.18 | 4.78 | 4.63 | 4.23 | 4.05 | 3.41 | 3.23 | 3.16 | 3.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,277,960K ÷ $326,614K
= 16.16
The financial leverage ratio of Nabors Industries Ltd has shown fluctuations over the past eight quarters. The ratio ranged from a low of 8.93 in Q1 2022 to a high of 16.16 in Q4 2023. This indicates that the company's reliance on debt to finance its operations and investments has varied significantly during this period.
The general trend suggests an overall increase in the financial leverage ratio from Q1 2022 to Q4 2023, with some fluctuations in between. This upward trend could indicate that the company has been taking on more debt relative to its equity over time. However, it is important to note that a higher financial leverage ratio also implies higher financial risk as the company may face challenges in meeting its debt obligations, especially in periods of financial strain.
Further analysis and comparison with industry benchmarks or competitors' ratios would provide more insights into how Nabors Industries Ltd's financial leverage ratio compares and whether the current levels are sustainable and within an acceptable range for its industry.
Peer comparison
Dec 31, 2023