Weatherford International PLC (WFRD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,023,000 | 4,331,000 | 3,645,000 | 3,685,000 | 4,954,000 |
| Receivables | US$ in thousands | 1,216,000 | 989,000 | 825,000 | 826,000 | 1,241,000 |
| Receivables turnover | 4.13 | 4.38 | 4.42 | 4.46 | 3.99 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,023,000K ÷ $1,216,000K
= 4.13
The receivables turnover ratio for Weatherford International plc has shown a decreasing trend over the past three years. In 2021, the ratio was 4.42, which decreased slightly to 4.38 in 2022 and further to 4.22 in 2023. This implies that the company is collecting its accounts receivable slightly slower each year. A declining receivables turnover can indicate potential issues with the company's credit policies, collection efforts, or the creditworthiness of its customers. Further analysis and comparison with industry benchmarks would be needed to fully assess the effectiveness of Weatherford International plc's accounts receivable management.
Peer comparison
Dec 31, 2023