Weatherford International PLC (WFRD)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,184,000 | 5,315,000 | 5,445,000 | 5,584,000 |
| Property, plant and equipment | US$ in thousands | 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 | 2,122,000 | 1,881,000 | 1,984,000 | 1,994,000 |
| Fixed asset turnover | 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 | 2.44 | 2.83 | 2.74 | 2.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,023,000K ÷ $957,000K
= 5.25
The fixed asset turnover ratio of Weatherford International plc has shown a generally increasing trend over the past eight quarters, indicating an improvement in the company's efficiency in generating sales revenue from its investment in fixed assets.
The company's fixed asset turnover ratio ranged from 3.89 to 5.40 during the given period. The higher values in the most recent quarters (Q4 2023, Q3 2023, Q2 2023) suggest that Weatherford International has been utilizing its fixed assets more effectively to generate revenue compared to earlier periods.
This increasing trend in fixed asset turnover could be a positive sign of improved operational efficiency, effective asset utilization, or potentially better demand for the company's products or services. It also indicates that Weatherford International is likely managing its fixed assets well and maximizing their productive capacity.
Overall, the consistent improvement in fixed asset turnover over the quarters reflects positively on Weatherford International's ability to generate sales from its fixed asset base efficiently, which is crucial for enhancing profitability and shareholder value in the long term.
Peer comparison
Dec 31, 2023