Weatherford International PLC (WFRD)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,216,000 | 1,261,000 | 1,068,000 | 1,088,000 | 989,000 | 927,000 | 930,000 | 868,000 | 825,000 | 816,000 | 782,000 | 793,000 | 826,000 | 835,000 | 927,000 | 1,204,000 | 1,241,000 | 1,277,000 | 1,226,000 | 1,154,000 |
| 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 |
| Quick ratio | 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 | 1.11 | 0.58 | 0.64 | 0.70 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($958,000K
+ $—K
+ $1,216,000K)
÷ $1,866,000K
= 1.17
The quick ratio of Weatherford International plc has been steadily decreasing over the past few quarters, indicating a slight deterioration in the company's liquidity position. The ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has decreased from 1.46 in Q4 2022 to 1.31 in Q4 2023.
While a quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities, the declining trend raises some concerns about the company's ability to quickly meet its financial obligations in the near future. However, it is worth noting that the quick ratio has generally been above 1 in all quarters, suggesting that the company has maintained a relatively healthy liquidity position overall.
Further investigation into the underlying reasons for the decrease in the quick ratio, such as changes in current assets and liabilities composition, would provide more insights into the company's liquidity management and potential financial risks. Additional analysis of other liquidity ratios and overall financial performance indicators would also be beneficial in obtaining a comprehensive view of Weatherford International plc's financial health.
Peer comparison
Dec 31, 2023