Weatherford International PLC (WFRD)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,505,000 | 5,422,000 | 5,326,000 | 5,195,000 | 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 |
| Receivables | US$ in thousands | 1,261,000 | 1,231,000 | 1,319,000 | 1,251,000 | 1,216,000 | 1,261,000 | 1,068,000 | 1,088,000 | 989,000 | 927,000 | 930,000 | 868,000 | 825,000 | 816,000 | 782,000 | 793,000 | 826,000 | 835,000 | 927,000 | 1,204,000 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,505,000K ÷ $1,261,000K
= 4.37
The receivables turnover ratio, which indicates how efficiently a company is managing its receivables, has shown varying trends for Weatherford International PLC over the past few years.
From March 31, 2020, to September 30, 2021, there was a consistent increase in the receivables turnover ratio, peaking at 6.77 on September 30, 2020. This upward trend suggests that Weatherford was collecting its accounts receivables more frequently during this period, indicating effective credit management and collection practices.
However, from September 30, 2021, to September 30, 2023, the receivables turnover ratio gradually declined. This decrease may indicate that Weatherford was taking longer to collect its receivables during this period, which could potentially lead to cash flow issues if not managed effectively.
In the most recent periods from March 31, 2024, to December 31, 2024, the receivables turnover ratio has stabilized around the range of 4.00 to 4.40. This stability could suggest that Weatherford has implemented measures to maintain an optimal balance between the speed of receivables collection and maintaining good customer relationships.
Overall, a receivables turnover ratio of around 4 to 5 for Weatherford International PLC indicates that the company is collecting its receivables around 4 to 5 times a year on average. It is essential for the company to continue monitoring and managing its receivables effectively to ensure cash flow liquidity and financial stability.
Peer comparison
Dec 31, 2024