Weatherford International PLC (WFRD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.78% | 92.77% | 91.22% | 48.28% | 22.22% |
| Operating profit margin | 16.32% | 9.51% | 3.18% | -40.33% | 18.17% |
| Pretax margin | 9.44% | 2.61% | -9.99% | -49.82% | 77.09% |
| Net profit margin | 8.30% | 0.60% | -12.35% | -52.13% | 73.90% |
Weatherford International plc has shown significant improvement in its profitability ratios over the past three years. The gross profit margin has been on an upward trend, increasing from 25.49% in 2021 to 33.89% in 2023. This indicates a positive trend in the company's ability to generate revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a consistent improvement, rising from 3.18% in 2021 to 15.97% in 2023. This demonstrates the company's efficiency in managing its operating expenses and generating profits from its core business operations.
The pretax margin has also experienced a substantial increase, from -9.41% in 2021 to 9.85% in 2023. This indicates that the company has been able to improve its profitability before accounting for taxes, which is a positive sign of financial health and operational efficiency.
Furthermore, the net profit margin has seen a remarkable improvement, increasing from -12.35% in 2021 to 8.12% in 2023. This shows that Weatherford International plc has successfully turned its bottom line profitability around and is now generating stronger profits after all expenses, including taxes.
Overall, Weatherford International plc's profitability ratios reveal a positive trajectory, reflecting improving financial performance and operational efficiency over the past three years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.18% | 8.73% | 2.43% | -27.35% | 12.34% |
| Return on assets (ROA) | 8.23% | 0.55% | -9.43% | -35.35% | 50.20% |
| Return on total capital | 88.74% | 77.01% | 24.58% | -163.84% | 31.25% |
| Return on equity (ROE) | 45.13% | 4.86% | -95.34% | -211.80% | 127.12% |
Weatherford International plc has shown a significant improvement in profitability ratios over the past three years. The operating return on assets (Operating ROA) has increased steadily from 2.43% in 2021 to 16.18% in 2023, indicating that the company's operational efficiency in generating profits from its assets has improved significantly.
Return on assets (ROA) has also shown a positive trend, increasing from negative figures in 2021 to 8.23% in 2023. This indicates that the company has been more effective in generating profits from its total assets over the years.
Return on total capital has exhibited a substantial increase from 3.76% in 2021 to 27.48% in 2023. This suggests that Weatherford International plc has been able to generate higher returns for its total capital employed, which is a positive sign for the company's financial health.
Return on equity (ROE) has shown a remarkable improvement, rising from a negative figure in 2021 to 45.13% in 2023. This indicates that the company has been successful in creating value for its shareholders by efficiently utilizing their equity investments.
Overall, the upward trend displayed in Weatherford International plc's profitability ratios signifies improved financial performance and efficiency in utilizing assets and capital to generate profits over the years. It suggests that the company has been successful in enhancing shareholder value and is heading in the right direction in terms of profitability.