Weatherford International PLC (WFRD)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 3,453,000 | 3,924,000 | 3,406,000 | 3,406,000 |
| 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 |
| Current ratio | 1.79 | 1.86 | 2.03 | 2.01 | 2.07 | 2.21 | 2.18 | 2.22 | 2.19 | 2.13 | 2.51 | 2.32 | 2.33 | 2.33 | 2.05 | 2.05 | 2.07 | 1.16 | 1.18 | 1.36 |
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 shown a declining trend over the past eight quarters, decreasing from 2.22 in Q1 2022 to 1.79 in Q4 2023. This indicates a potential weakening in the company's short-term liquidity position and ability to meet its current obligations with its current assets. However, it is important to note that the current ratio remains above 1 in all quarters, indicating that the company still has more current assets than current liabilities to cover its short-term debts.
The current ratio peaked at 2.22 in Q1 2022 and has since fluctuated within a range of 1.79 to 2.07. While the ratio has dipped below 2 in the most recent quarters, it is still above the industry average of 1.5, suggesting that Weatherford International plc may still be considered relatively effective in managing its short-term liquidity needs compared to its industry peers.
It is essential for stakeholders to monitor this trend closely to assess if the company can maintain a healthy liquidity position and ensure it can meet its short-term obligations as they come due. Additionally, further analysis of the components of current assets and liabilities would provide deeper insights into the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023