Weatherford International PLC (WFRD)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 235,000 | 509,000 | 502,000 | 474,000 | 463,000 | 290,000 | 290,000 | 296,000 | 319,000 | 358,000 | 335,000 | 340,000 | 320,000 | 783,000 | 807,000 | 1,190,000 | 1,280,000 | 2,190,000 | 2,948,000 | 3,335,000 |
| Payables | US$ in thousands | 792,000 | 723,000 | 771,000 | 716,000 | 679,000 | 620,000 | 502,000 | 502,000 | 460,000 | 425,000 | 448,000 | 385,000 | 380,000 | 350,000 | 348,000 | 330,000 | 325,000 | 332,000 | 384,000 | 544,000 |
| Payables turnover | 0.30 | 0.70 | 0.65 | 0.66 | 0.68 | 0.47 | 0.58 | 0.59 | 0.69 | 0.84 | 0.75 | 0.88 | 0.84 | 2.24 | 2.32 | 3.61 | 3.94 | 6.60 | 7.68 | 6.13 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $235,000K ÷ $792,000K
= 0.30
The payables turnover ratio for Weatherford International PLC has shown a declining trend over the years. The ratio decreased from 6.13 in March 2020 to 0.30 in December 2024. This decline indicates that the company is taking longer to pay its suppliers and manage its accounts payable effectively. A decreasing payables turnover ratio may suggest potential liquidity issues or inefficiencies in managing working capital. It is important for the company to closely monitor and improve its payables turnover ratio to ensure healthy cash flow management and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2024