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