Weatherford International PLC (WFRD)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,505,000 | 5,422,000 | 5,326,000 | 5,195,000 | 5,023,000 | 4,982,000 | 4,789,000 | 4,579,000 | 4,331,000 | 4,087,000 | 3,912,000 | 3,751,000 | 3,645,000 | 2,718,000 | 3,357,000 | 4,096,000 | 4,479,000 | 5,656,000 | 5,386,000 | 5,053,000 |
| Property, plant and equipment | US$ in thousands | 1,061,000 | 1,050,000 | 1,007,000 | 988,000 | 957,000 | 922,000 | 906,000 | 919,000 | 918,000 | 908,000 | 939,000 | 964,000 | 996,000 | 1,022,000 | 1,108,000 | 1,170,000 | 1,236,000 | 1,304,000 | 1,367,000 | 1,554,000 |
| Fixed asset turnover | 5.19 | 5.16 | 5.29 | 5.26 | 5.25 | 5.40 | 5.29 | 4.98 | 4.72 | 4.50 | 4.17 | 3.89 | 3.66 | 2.66 | 3.03 | 3.50 | 3.62 | 4.34 | 3.94 | 3.25 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,505,000K ÷ $1,061,000K
= 5.19
The fixed asset turnover ratio for Weatherford International PLC has shown a fluctuating trend over the past few years. The ratio has generally been increasing since March 31, 2020, reaching its peak at 5.40 as of September 30, 2023. This indicates that the company is generating increasing revenue relative to its investment in fixed assets during this period.
However, there was a slight dip in the fixed asset turnover ratio in the following quarters, stabilizing around the range of 5.16 to 5.29 between September 30, 2024, and June 30, 2024. This may imply a potential slowdown in revenue generated from fixed assets during this period.
Overall, the trend suggests that Weatherford International PLC has been effectively utilizing its fixed assets to generate revenue, but the company may need to closely monitor and possibly optimize its asset utilization strategies to maintain or improve its fixed asset turnover efficiency in the future.
Peer comparison
Dec 31, 2024