Weatherford International PLC (WFRD)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	0.27	0.55	0.57	0.56	0.59	0.37	0.39	0.41	0.46	0.50	0.47	0.50	0.48	1.15	1.22	1.76	1.79	2.70	3.42	3.32
Receivables turnover	4.37	4.40	4.04	4.15	4.13	3.95	4.48	4.21	4.38	4.41	4.21	4.32	4.42	3.33	4.29	5.17	5.42	6.77	5.81	4.20
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
Working capital turnover	3.23	3.13	3.19	3.44	3.40	3.35	3.18	2.99	2.75	2.43	2.40	2.36	2.31	1.58	1.78	2.28	2.47	3.01	3.59	2.92

Weatherford International PLC's inventory turnover has been on a declining trend over the past few years, indicating that the company is taking longer to sell its inventory. This could potentially lead to higher carrying costs and obsolescence risks. The receivables turnover ratio shows a fluctuating pattern, but overall, the company's ability to collect its receivables has remained relatively stable.

On the other hand, the payables turnover ratio has decreased significantly over the years, suggesting that Weatherford International PLC is taking longer to pay its suppliers. This may indicate potential liquidity issues or strained relationships with vendors.

Weatherford International PLC's working capital turnover has shown a generally increasing trend, which means the company is generating more revenue for each unit of working capital invested. This could be a positive sign of efficiency in managing its working capital resources.

Overall, Weatherford International PLC's activity ratios reflect some areas of concern, particularly in inventory management and payables turnover, which may warrant further investigation to address potential operational inefficiencies and cash flow challenges.

Average number of days

		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
Days of inventory on hand (DOH)	days	1,366.81	659.01	642.75	654.54	621.21	976.69	945.22	886.60	788.35	737.14	780.12	734.29	764.22	317.45	299.42	207.34	204.46	135.17	106.73	109.88
Days of sales outstanding (DSO)	days	83.61	82.87	90.39	87.90	88.36	92.39	81.40	86.73	83.35	82.79	86.77	84.46	82.61	109.58	85.03	70.67	67.31	53.89	62.82	86.97
Number of days of payables	days	1,230.13	518.46	560.59	551.35	535.28	780.34	631.83	619.02	526.33	433.31	488.12	413.31	433.44	163.15	157.40	101.22	92.68	55.33	47.54	59.54

The analysis of Weatherford International PLC activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- The DOH ratio has shown a significant increase over the years, indicating that Weatherford International is holding inventory for a longer period before selling it.
- There was a spike in DOH from December 31, 2022, to March 31, 2023, followed by a gradual decline.
- The ratio peaked at 976.69 days on September 30, 2023, before decreasing to 642.75 days by June 30, 2024.

2. Days of Sales Outstanding (DSO):
- The DSO ratio fluctuated over the years, reflecting changes in the company's accounts receivable collection efficiency.
- There were fluctuations in DSO, with peaks observed on September 30, 2021, and December 31, 2023.
- The ratio ranged between 53.89 days on September 30, 2020, and 90.39 days on June 30, 2024.

3. Number of Days of Payables:
- The number of days of payables also exhibited fluctuations, indicating changes in the company's payment practices to suppliers.
- There was a notable increase in payables days from June 30, 2021, to December 31, 2021, followed by fluctuations in subsequent periods.
- The ratio ranged from 47.54 days on June 30, 2020, to 1230.13 days on December 31, 2024, showing significant variability in payment terms.

Overall, the activity ratios of Weatherford International PLC suggest that the company has experienced fluctuations in inventory management, accounts receivable collection, and payment practices over the analyzed periods. Monitoring these ratios can provide insights into the company's efficiency in managing its working capital and operational performance.

Long-term

	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
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
Total asset turnover	1.07	1.05	1.04	1.02	0.99	1.02	1.03	0.97	0.92	0.87	0.83	0.80	0.76	0.53	0.65	0.77	0.82	1.00	1.00	0.82

Weatherford International PLC's fixed asset turnover ratio has shown an increasing trend over the past few years, indicating the company's ability to generate revenue from its fixed assets has been improving. The ratio increased from 3.25 in March 2020 to 5.19 in December 2024. This suggests that the company has been utilizing its fixed assets more efficiently to generate sales.

In contrast, the total asset turnover ratio fluctuated over the same period, starting at 0.82 in March 2020, dipping to 0.53 in September 2021, and then steadily increasing to 1.07 by December 2024. This ratio measures the company's ability to generate revenue from its total assets. The fluctuation in this ratio may indicate changes in the company's asset base and how effectively it has been utilizing its total assets to generate sales.

Overall, the increasing trend in the fixed asset turnover ratio coupled with the eventual improvement in the total asset turnover ratio suggests that Weatherford International PLC has been effectively managing its assets to drive sales growth over the observed period. However, further analysis in conjunction with other financial metrics and industry benchmarks would be necessary to gain a more comprehensive understanding of the company's overall long-term activity performance.