Weatherford International PLC (WFRD)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,505,000 | 5,023,000 | 4,331,000 | 3,645,000 | 3,685,000 |
| Property, plant and equipment | US$ in thousands | 1,061,000 | 957,000 | 918,000 | 996,000 | 1,236,000 |
| Fixed asset turnover | 5.19 | 5.25 | 4.72 | 3.66 | 2.98 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,505,000K ÷ $1,061,000K
= 5.19
Fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. In the case of Weatherford International PLC, the trend of the fixed asset turnover ratio has been positive over the years, increasing from 2.98 in December 2020 to 5.19 in December 2024. This indicates that the company is effectively utilizing its fixed assets to generate sales. The rising trend suggests improvements in operational efficiency and productivity, which could lead to higher profitability in the long run. It also implies better asset management and capital allocation within the company. Overall, the increasing fixed asset turnover ratio reflects positively on Weatherford International PLC's ability to generate revenue from its fixed asset base.
Peer comparison
Dec 31, 2024