Weatherford International PLC (WFRD)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 2.01 2.04 1.99 1.84 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
Quick ratio 1.28 1.29 1.29 1.15 1.17 1.21 1.27 1.27 1.29 1.34 1.31 1.31 1.33 1.38 1.61 1.44 1.43 1.38 1.13 1.14
Cash ratio 0.54 0.55 0.51 0.46 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

Weatherford International PLC has shown stable current ratios over the past few years, ranging from 1.79 to 2.51. This indicates the company's ability to cover its short-term liabilities with its current assets. The current ratio peaked at 2.51 as of June 30, 2021, but has generally remained above 2, reflecting a strong liquidity position.

In terms of quick ratios, Weatherford International PLC has generally maintained ratios above 1, indicating a comfortable position to meet its short-term obligations without relying heavily on inventory. The quick ratios have ranged from 1.15 to 1.61, with the highest being reported as of June 30, 2021. This suggests that the company has sufficient liquid assets to cover immediate liabilities.

When considering the cash ratio, which measures the ability to cover current liabilities using only cash and cash equivalents, Weatherford International PLC has exhibited a declining trend over the years. The cash ratio decreased from 0.82 as of December 31, 2020, to 0.54 as of December 31, 2024. This indicates a reduced capacity to meet short-term obligations solely through cash reserves.

Overall, Weatherford International PLC has maintained strong liquidity positions as reflected by stable current and quick ratios. However, the decreasing trend in the cash ratio suggests a potential need to manage cash reserves more efficiently to sustain liquidity in the long term.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 220.29 223.42 172.55 191.08 174.29 288.73 394.80 354.31 345.37 386.61 378.77 405.45 413.39 263.88 227.05 176.79 179.09 133.72 122.00 137.31

The cash conversion cycle of Weatherford International PLC has displayed fluctuations over the periods from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In March 2020, the company had a cash conversion cycle of 137.31 days, which decreased to 122.00 days by June 2020. However, the cycle then increased to 179.09 days by December 2020 and further to 413.39 days by December 2021, suggesting a significant delay in collecting cash from sales relative to the investment in inventory and operations.

The trend then started to improve, with a decrease to 174.29 days by December 2023, followed by lower levels in subsequent periods. By the end of December 2024, the cash conversion cycle had decreased to 220.29 days.

Overall, the cash conversion cycle of Weatherford International PLC has experienced fluctuations, indicating varying efficiency in managing its working capital and operations to convert investments into cash. The company should continue to closely monitor and manage its working capital to ensure optimal financial performance and liquidity.