Nabors Industries Ltd (NBR)

Financial leverage 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
Total assets US$ in thousands 4,504,300 4,553,640 4,615,690 4,644,970 5,277,960 4,726,850 4,463,270 5,277,960 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
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
Financial leverage ratio 33.37 23.80 18.44 16.22 16.16 13.57 11.08 13.11 12.82 10.86 10.59 8.93 9.35 7.30 6.16 5.18 4.78 4.63 4.23 4.05

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 been showing an upward trend over the past few years, starting at 4.05 on March 31, 2020 and increasing steadily to reach 33.37 by December 31, 2024. This indicates that the company is increasingly relying on debt to finance its operations and growth.

The ratio surpassed industry benchmarks, suggesting a high level of financial risk associated with the company's capital structure. A high financial leverage ratio can magnify both returns and losses for shareholders, as increased debt can amplify profits but also increase the risk of financial distress.

It is important for investors and stakeholders to closely monitor Nabors Industries' financial leverage ratio to assess the company's ability to manage its debt levels and maintain financial stability in the long term. Additionally, the company may need to address its high debt levels through strategies such as deleveraging or improving operational efficiency to reduce financial risk and enhance future financial performance.


Peer comparison

Dec 31, 2024

Company name
Symbol
Financial leverage ratio
Nabors Industries Ltd
NBR
33.37
Helmerich and Payne Inc
HP
1.98
Patterson-UTI Energy Inc
PTEN
1.68
Valaris Ltd
VAL
2.17