Nabors Industries Ltd (NBR)

Solvency ratios

	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
Debt-to-assets ratio	0.56	0.55	0.54	0.54	0.48	0.53	0.56	0.49	0.54	0.54	0.54	0.54	0.59	0.59	0.56	0.55	0.54	0.57	0.55	0.54
Debt-to-capital ratio	0.95	0.93	0.91	0.90	0.88	0.88	0.86	0.86	0.87	0.85	0.85	0.83	0.85	0.81	0.78	0.74	0.72	0.72	0.70	0.69
Debt-to-equity ratio	18.56	13.08	10.04	8.77	7.69	7.18	6.22	6.36	6.88	5.89	5.74	4.80	5.52	4.34	3.45	2.86	2.58	2.62	2.32	2.18
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

Nabors Industries Ltd's solvency ratios indicate its ability to meet its long-term financial obligations. The Debt-to-assets ratio has fluctuated between 0.48 and 0.59 over the period analyzed. This ratio shows the proportion of the company's assets financed by debt, with lower values suggesting a healthier financial position.

The Debt-to-capital ratio has increased steadily from 0.69 to 0.95, indicating a growing reliance on debt to finance the company's operations and investments. This may raise concerns about the company's financial leverage and ability to manage debt effectively.

The Debt-to-equity ratio has shown significant volatility, ranging from 2.18 to 18.56. A higher ratio indicates higher financial risk, as the company is more leveraged and relies more on debt financing compared to equity.

The Financial leverage ratio has also been on an upward trend, reaching 33.37 by the end of December 2024. This ratio reflects the company's overall debt levels relative to its equity and indicates the extent to which the company is leveraged. Higher values suggest higher financial risk and a potentially weaker financial position.

Overall, the trend in Nabors Industries Ltd's solvency ratios indicates a growing reliance on debt financing, which may raise concerns about the company's ability to manage its debt levels effectively and meet its long-term financial obligations. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.

Coverage ratios

	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
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

The interest coverage ratio of Nabors Industries Ltd shows a deteriorating trend over multiple periods, reflecting the company's ability to meet its interest obligations through its operating income. The ratio remained negative from March 2020 to September 2022, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.

However, there was a significant improvement in the interest coverage ratio from March 2023 onwards, reaching positive values. This positive trend suggests that the company's operating income has improved sufficiently to cover its interest payments.

Overall, it is essential for investors and stakeholders to monitor Nabors Industries Ltd's interest coverage ratio closely to ensure the company's ability to meet its debt obligations and sustain future growth.