Weatherford International PLC (WFRD)
Working capital 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 |
| Total current assets | US$ in thousands | 3,402,000 | 3,400,000 | 3,362,000 | 3,312,000 | 3,345,000 | 3,220,000 | 2,971,000 | 3,043,000 | 3,043,000 | 3,063,000 | 3,010,000 | 2,889,000 | 2,911,000 | 3,244,000 | 3,126,000 | 3,158,000 | 3,177,000 | 3,293,000 | 2,927,000 | 3,374,000 |
| Total current liabilities | US$ in thousands | 1,696,000 | 1,667,000 | 1,691,000 | 1,800,000 | 1,866,000 | 1,731,000 | 1,464,000 | 1,511,000 | 1,470,000 | 1,384,000 | 1,383,000 | 1,300,000 | 1,332,000 | 1,524,000 | 1,243,000 | 1,364,000 | 1,362,000 | 1,416,000 | 1,426,000 | 1,644,000 |
| Working capital turnover | 3.23 | 3.13 | 3.19 | 3.44 | 3.40 | 3.35 | 3.18 | 2.99 | 2.75 | 2.43 | 2.40 | 2.36 | 2.31 | 1.58 | 1.78 | 2.28 | 2.47 | 3.01 | 3.59 | 2.92 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,505,000K ÷ ($3,402,000K – $1,696,000K)
= 3.23
The working capital turnover of Weatherford International PLC has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales revenue.
The trend of the working capital turnover ratio shows an initial increase from March 2020 to June 2020, indicating an improvement in the efficiency of working capital utilization. However, there was a slight decrease in the ratio by September 2020, which continued until March 2021, implying a potential inefficiency in managing working capital compared to generating sales.
From June 2021 to December 2021, the working capital turnover ratio improved significantly, suggesting better management of working capital in generating sales. The trend continued to show improvement until September 2022, indicating enhanced efficiency in utilizing working capital.
From September 2022 to December 2024, the working capital turnover remained relatively stable, fluctuating within a narrow range. This stability suggests that Weatherford International maintained a consistent level of efficiency in converting working capital into sales revenue during this period.
Overall, the working capital turnover ratio analysis indicates that Weatherford International PLC has made strides in optimizing its working capital management in generating sales revenue efficiently, with some fluctuations observed throughout the years.
Peer comparison
Dec 31, 2024