Weatherford International PLC (WFRD)

Cash ratio

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
Cash and cash equivalents US$ in thousands 958,000 839,000 787,000 833,000 910,000 933,000 879,000 841,000 951,000 1,291,000 1,217,000 1,177,000 1,118,000 1,121,000 680,000 670,000 618,000 676,000 618,000 598,000
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 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 1,672,000 3,380,000 2,889,000 2,504,000
Cash ratio 0.51 0.48 0.54 0.55 0.62 0.67 0.64 0.65 0.71 0.85 0.98 0.86 0.82 0.79 0.48 0.41 0.37 0.20 0.21 0.24

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($958,000K + $—K) ÷ $1,866,000K
= 0.51

The cash ratio of Weatherford International plc has shown a declining trend over the last two years, dropping from 0.87 in Q3 2022 to 0.66 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened. Although the ratio has fluctuated slightly quarter by quarter, the general downward trajectory suggests a potential liquidity concern. A cash ratio below 1.0 typically signifies that the company may have difficulty meeting its immediate obligations. Therefore, it is essential for Weatherford International plc to closely monitor its cash position and work on improving its liquidity management to ensure financial stability in the future.


Peer comparison

Dec 31, 2023