Weatherford International PLC (WFRD)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.27 | 0.55 | 0.57 | 0.56 | 0.59 | 0.37 | 0.39 | 0.41 | 0.46 | 0.50 | 0.47 | 0.50 | 0.48 | 1.15 | 1.22 | 1.76 | 1.79 | 2.70 | 3.42 | 3.32 | |
| DOH | days | 1,366.81 | 659.01 | 642.75 | 654.54 | 621.21 | 976.69 | 945.22 | 886.60 | 788.35 | 737.14 | 780.12 | 734.29 | 764.22 | 317.45 | 299.42 | 207.34 | 204.46 | 135.17 | 106.73 | 109.88 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.27
= 1,366.81
The days of inventory on hand (DOH) for Weatherford International PLC have shown significant fluctuations over the periods analyzed. The DOH increased from 109.88 days as of March 31, 2020, to a peak of 976.69 days as of September 30, 2023. This upward trend indicates that the company may be holding excess inventory levels relative to its sales or production levels during this period.
The substantial increase in DOH could suggest challenges in managing inventory efficiently, potentially leading to increased carrying costs, obsolescence risks, and reduced liquidity. A high DOH can also indicate potential operational inefficiencies or difficulties in demand planning and forecasting.
However, it is worth noting that there were occasional decreases in DOH, such as the declines from June 30, 2023, to September 30, 2024. These fluctuations indicate potential efforts by the company to address inventory management issues and optimize its working capital.
The sharp increase in DOH towards the end of the analysis period, reaching 1,366.81 days as of December 31, 2024, raises concerns about the company's inventory control practices and the need for strategic measures to improve inventory turnover and reduce excess holding costs.
Overall, the analysis of Weatherford International's DOH highlights the importance of closely monitoring and managing inventory levels to support operational efficiency, profitability, and overall financial health.
Peer comparison
Dec 31, 2024