Weatherford International PLC (WFRD)

Weatherford International plc's liquidity ratios have shown a decreasing trend over the past three years. The current ratio decreased from 2.19 in 2021 to 2.07 in 2022 and further to 1.79 in 2023, indicating a potential decline in the company's ability to meet its short-term obligations using its current assets.

Similarly, the quick ratio also decreased from 1.56 in 2021 to 1.46 in 2022 and then to 1.31 in 2023. This shows a decreasing trend in the company's ability to cover its immediate liabilities with its most liquid assets, excluding inventory.

The cash ratio followed the same pattern, dropping from 0.94 in 2021 to 0.79 in 2022 and further to 0.66 in 2023. This indicates a declining ability of Weatherford International plc to cover its short-term liabilities solely with its available cash and cash equivalents.

Overall, the decreasing trend in all three liquidity ratios suggests that Weatherford International plc may be facing challenges in maintaining sufficient liquidity to meet its short-term financial obligations. It is important for the company to closely monitor its liquidity position and take appropriate measures to ensure it remains financially stable.

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Additional liquidity measure

The cash conversion cycle of Weatherford International plc has shown a decreasing trend over the past three years. In 2021, the cash conversion cycle was 121.59 days, which decreased to 111.03 days in 2022 and further decreased to 98.15 days in 2023. This indicates that the company has been able to efficiently manage its working capital and convert its resources into cash more quickly over the years. A lower cash conversion cycle implies that the company is able to collect cash from its customers, pay its suppliers, and manage its inventory more effectively, leading to improved liquidity and potentially higher profitability. Overall, the declining trend in the cash conversion cycle reflects positively on the company's operational efficiency and working capital management.