Weatherford International PLC (WFRD)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,184,000 | 5,315,000 | 5,445,000 | 5,584,000 |
| Receivables | US$ in thousands | 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 | 1,241,000 | 1,277,000 | 1,226,000 | 1,154,000 |
| Receivables turnover | 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 | 4.18 | 4.16 | 4.44 | 4.84 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,023,000K ÷ $1,216,000K
= 4.13
Weatherford International plc's receivables turnover has shown some fluctuations over the past eight quarters. The company's receivables turnover ratio, which measures how efficiently the firm is able to collect outstanding receivables from customers, ranged from 3.95 to 4.48 during this period.
In Q2 2023, the receivables turnover ratio peaked at 4.48, indicating that the company was able to collect its receivables more efficiently during that period compared to other quarters. However, in Q3 2023, there was a slight dip in the ratio to 3.95, which suggests a potential delay in collecting receivables during that quarter.
Overall, the average receivables turnover ratio over the eight quarters was approximately 4.27, indicating that, on average, Weatherford International plc turns over its accounts receivable around four times annually. This implies that the company is relatively efficient in collecting payments from its customers.
It is important for the company to monitor its receivables turnover consistently to ensure a healthy cash flow and timely collection of outstanding receivables. Any significant deviations from the historical trend should be thoroughly analyzed to identify potential issues in the collection process or changes in customer payment patterns.
Peer comparison
Dec 31, 2023