Nabors Industries Ltd.(Nbr) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for NBR compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
• In '2021', NBR's inventory turnover was 15.66, reflecting efficiency in managing inventory stock. Industry average for Oil & Gas Production in '2021' stood at 6.08.
• In '2022', NBR's inventory turnover was 18.33, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 6.32. Industry average increased by 0.24 compared to previous year.
• In '2023', NBR's inventory turnover was 17.67, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 6.37. Industry average increased by 0.05 compared to previous year.
• In '2024', NBR's inventory turnover was 17.11, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 6.34. Industry average declined by 0.03 from previous year.
Overall, NBR's inventory turnover has steadily improved over the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.