Weatherford International PLC (WFRD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 95.73% | 90.78% | 92.77% | 91.22% | 48.28% |
| Operating profit margin | 17.04% | 16.32% | 9.51% | 3.18% | -40.33% |
| Pretax margin | 12.62% | 9.44% | 2.61% | -9.99% | -49.82% |
| Net profit margin | 9.19% | 8.30% | 0.60% | -12.35% | -52.13% |
Weatherford International PLC has shown a significant improvement in profitability ratios over the years. The Gross Profit Margin increased from 48.28% in 2020 to 95.73% in 2024, indicating the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
The Operating Profit Margin also exhibited positive growth, with a shift from a negative -40.33% in 2020 to 17.04% in 2024. This suggests that Weatherford International PLC has successfully managed its operating expenses and is now earning more from its core operations.
The Pretax Margin moved from a negative -49.82% in 2020 to 12.62% in 2024, reflecting the company's ability to generate profits before accounting for taxes. This improvement underscores a better financial performance and management of costs and revenues.
The Net Profit Margin, representing the company's bottom-line profitability, increased from a negative -52.13% in 2020 to 9.19% in 2024. This growth in net profit margin indicates that Weatherford International PLC has been able to enhance its overall profitability after accounting for all expenses, including taxes and other costs.
Overall, the trend in profitability ratios for Weatherford International PLC demonstrates a positive trajectory, showing improved efficiency in generating profits and managing costs over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.18% | 16.18% | 8.73% | 2.43% | -27.35% |
| Return on assets (ROA) | 9.81% | 8.23% | 0.55% | -9.43% | -35.35% |
| Return on total capital | 73.00% | 88.74% | 77.01% | 24.58% | -163.84% |
| Return on equity (ROE) | 39.38% | 45.13% | 4.86% | -95.34% | -211.80% |
Weatherford International PLC has shown a significant improvement in its profitability ratios over the years.
- Operating return on assets (Operating ROA) has steadily increased from a negative value of -27.35% in December 2020 to reach 18.18% in December 2024. This indicates that the company is becoming more effective in generating operating profits from its assets.
- Return on assets (ROA) has also shown improvement, moving from negative values to positive territory, with the ratio climbing from -35.35% in December 2020 to 9.81% in December 2024. This demonstrates that Weatherford International PLC is generating more profits relative to its total assets.
- Return on total capital has shown a remarkable recovery, progressing from a steep negative figure of -163.84% in December 2020 to a positive rate of 73.00% by December 2024. This suggests that the company's ability to generate returns for both debt and equity holders has significantly improved.
- Return on equity (ROE) has also experienced a positive turnaround, with the ratio increasing from -211.80% in December 2020 to 39.38% in December 2024. This indicates that shareholders' equity is being more efficiently utilized to generate profits.
Overall, the upward trend in these profitability ratios showcases Weatherford International PLC's enhanced profitability and efficiency in utilizing its assets and capital to generate returns for its stakeholders.