Weatherford International PLC (WFRD)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.37 | 4.40 | 4.04 | 4.15 | 4.13 | 3.95 | 4.48 | 4.21 | 4.38 | 4.41 | 4.21 | 4.32 | 4.42 | 3.33 | 4.29 | 5.17 | 5.42 | 6.77 | 5.81 | 4.20 | |
| DSO | days | 83.61 | 82.87 | 90.39 | 87.90 | 88.36 | 92.39 | 81.40 | 86.73 | 83.35 | 82.79 | 86.77 | 84.46 | 82.61 | 109.58 | 85.03 | 70.67 | 67.31 | 53.89 | 62.82 | 86.97 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.37
= 83.61
Weatherford International's days of sales outstanding (DSO) has experienced fluctuations over the years based on the provided data. The DSO ratio measures the average number of days a company takes to collect revenue after a sale is made.
From March 31, 2020, to September 30, 2021, Weatherford's DSO showed a decreasing trend, indicating an improvement in collecting revenue efficiently. However, from September 30, 2021, to September 30, 2023, there was an increasing trend in DSO, suggesting a potential slowdown in collecting payments from customers.
The DSO peaked at 109.58 days on September 30, 2021, which is a cause for concern as it indicates a delay in collecting payments. While there was a slight decrease in DSO by December 31, 2021, the ratio remained relatively high compared to earlier periods.
Overall, the average DSO over the provided period appears to be around 80 days, indicating that it takes Weatherford International approximately 80 days on average to collect revenue from customers. Monitoring DSO trends can help assess the company's efficiency in managing its accounts receivable and cash flow.
Peer comparison
Dec 31, 2024