Weatherford International PLC (WFRD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,023,000 | 4,331,000 | 3,645,000 | 3,685,000 | 4,954,000 |
| Property, plant and equipment | US$ in thousands | 957,000 | 918,000 | 996,000 | 1,236,000 | 2,122,000 |
| Fixed asset turnover | 5.25 | 4.72 | 3.66 | 2.98 | 2.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,023,000K ÷ $957,000K
= 5.25
Weatherford International plc's fixed asset turnover has been improving over the past three years. The company's fixed asset turnover ratio increased from 3.66 in 2021 to 4.72 in 2022, and further to 5.37 in 2023. This indicates that the company generated $5.37 in sales for every dollar invested in fixed assets in 2023, compared to $4.72 in 2022 and $3.66 in 2021.
The increasing trend in fixed asset turnover suggests that Weatherford International plc is becoming more efficient in utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio is generally considered positive as it indicates that the company is efficiently using its fixed assets to generate sales. This could be a result of better asset management, improved production processes, or increased demand for the company's products or services.
Overall, the improvement in Weatherford International plc's fixed asset turnover ratio reflects positively on the company's operational efficiency and effectiveness in utilizing its resources to generate revenue.
Peer comparison
Dec 31, 2023