Nabors Industries Ltd (NBR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 175,910 | 291,373 | 191,144 | 167,431 | 252,721 | 201,582 | 238,353 | 130,465 | -110,830 | -162,884 | -282,793 | -381,704 | -342,175 | -312,913 | -344,171 | -307,055 | -542,081 | -707,660 | -642,637 | -690,852 |
| Interest expense (ttm) | US$ in thousands | 210,864 | 207,160 | 195,852 | 190,523 | 185,285 | 179,592 | 179,391 | 176,126 | 177,895 | 178,220 | 176,596 | 175,411 | 171,476 | 174,849 | 185,035 | 194,527 | 206,274 | 207,508 | 206,396 | 206,681 |
| Interest coverage | 0.83 | 1.41 | 0.98 | 0.88 | 1.36 | 1.12 | 1.33 | 0.74 | -0.62 | -0.91 | -1.60 | -2.18 | -2.00 | -1.79 | -1.86 | -1.58 | -2.63 | -3.41 | -3.11 | -3.34 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $175,910K ÷ $210,864K
= 0.83
Interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
For Nabors Industries Ltd, the Interest Coverage ratios have shown a declining trend from negative values in the period from March 2020 to June 2022, indicating the company was struggling to cover its interest payments with its operating income.
However, from March 2023 onwards, the interest coverage ratio began to improve, moving into positive territory. This suggests that the company's operating income has become more sufficient to cover its interest expenses, indicating a positive development in the company's financial health.
Overall, the recent trend of increasing interest coverage ratios reflects a potential improvement in Nabors Industries Ltd's ability to meet its interest obligations, indicating a positive outlook for the company's financial performance.
Peer comparison
Dec 31, 2024