Weatherford International PLC (WFRD)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		0.30	0.68	0.68	0.84	5.86
Number of days of payables	days	1,230.13	535.28	536.42	433.44	62.24

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.30
= 1,230.13

The number of days of payables for Weatherford International PLC has shown a significant increase over the years. As of December 31, 2020, the company had an average payment period of 62.24 days, indicating a relatively efficient management of payables. However, by December 31, 2021, the number of days of payables surged to 433.44 days, suggesting a substantial delay in settling its obligations to creditors.

This trend continued in the following years, with the number of days of payables reaching 536.42 days by December 31, 2022, and a slightly lower but still high 535.28 days by December 31, 2023. By the end of the most recent reporting period on December 31, 2024, the number of days of payables spiked to a staggering 1,230.13 days, indicating a significant elongation in the payment cycle of the company.

Such a substantial increase in the number of days of payables may raise concerns about Weatherford International PLC's liquidity position and ability to manage its cash flow effectively. It suggests that the company is taking longer to settle its payables, potentially indicating financial constraints or difficulties in meeting its obligations promptly. Investors and stakeholders may need to closely monitor this metric in the future to assess the company's financial health and operational efficiency.