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