Weatherford International PLC (WFRD)
Total asset 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 |
| Total assets | US$ in thousands | 5,068,000 | 4,720,000 | 4,774,000 | 5,434,000 | 7,293,000 |
| Total asset turnover | 0.99 | 0.92 | 0.76 | 0.68 | 0.68 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,023,000K ÷ $5,068,000K
= 0.99
Weatherford International plc has shown an improving trend in total asset turnover over the past three years. The total asset turnover ratio measures the efficiency of a company in generating sales revenue from its total assets. A higher total asset turnover ratio indicates that the company is effectively utilizing its assets to generate sales.
In this case, the total asset turnover ratio has increased from 0.76 in 2021 to 0.92 in 2022, and further to 1.01 in 2023. This indicates that Weatherford International plc has been able to generate more revenue from its total assets over the years, showing improved asset efficiency and productivity.
The increase in total asset turnover ratio suggests that Weatherford International plc has been more efficient in managing its assets and generating sales, which can be a positive sign for investors and stakeholders. It reflects the company's ability to effectively utilize its resources to drive revenue growth.
Peer comparison
Dec 31, 2023