Weatherford International PLC (WFRD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,505,000 | 5,023,000 | 4,331,000 | 3,645,000 | 3,685,000 |
| Total current assets | US$ in thousands | 3,402,000 | 3,345,000 | 3,043,000 | 2,911,000 | 3,177,000 |
| Total current liabilities | US$ in thousands | 1,696,000 | 1,866,000 | 1,470,000 | 1,332,000 | 1,362,000 |
| Working capital turnover | 3.23 | 3.40 | 2.75 | 2.31 | 2.03 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,505,000K ÷ ($3,402,000K – $1,696,000K)
= 3.23
Weatherford International PLC's working capital turnover has been showing a positive trend over the years. From 2020 to 2024, the working capital turnover ratio has increased steadily from 2.03 to 3.23, indicating that the company is efficiently utilizing its working capital to generate sales.
This improvement suggests that Weatherford International PLC has been able to effectively manage its working capital, ensuring that funds are being utilized to support operations and drive revenue growth. The increasing trend in the ratio indicates a more efficient use of the company's resources and potentially better liquidity management.
A higher working capital turnover ratio generally signifies that the company is able to quickly convert its working capital into sales, which is a positive indicator of operational efficiency and effective management of its current assets and liabilities.
Overall, the trend in Weatherford International PLC's working capital turnover ratio indicates positive operational performance and suggests that the company is effectively managing its working capital to support its growth and operations.
Peer comparison
Dec 31, 2024