Weatherford International PLC (WFRD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,345,000 | 3,043,000 | 2,911,000 | 3,177,000 | 3,453,000 |
| Total current liabilities | US$ in thousands | 1,866,000 | 1,470,000 | 1,332,000 | 1,362,000 | 1,672,000 |
| Current ratio | 1.79 | 2.07 | 2.19 | 2.33 | 2.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,345,000K ÷ $1,866,000K
= 1.79
The current ratio of Weatherford International plc has been on a declining trend over the past three years, decreasing from 2.19 in 2021 to 2.07 in 2022, and further dropping to 1.79 in 2023. This indicates that the company's current assets may not be as sufficient to cover its current liabilities as they were in the previous years. A current ratio above 1 typically signifies that the company has more current assets than current liabilities, providing a safety cushion to meet its short-term obligations. However, a declining current ratio could suggest potential liquidity challenges or inefficiencies in managing short-term obligations. Further analysis of the company's liquidity position and working capital management may be warranted to fully assess the implications of the decreasing current ratio.
Peer comparison
Dec 31, 2023