Weatherford International PLC (WFRD)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,270,000 | 4,560,000 | 4,018,000 | 3,325,000 | 1,779,000 |
| Revenue | US$ in thousands | 5,505,000 | 5,023,000 | 4,331,000 | 3,645,000 | 3,685,000 |
| Gross profit margin | 95.73% | 90.78% | 92.77% | 91.22% | 48.28% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,270,000K ÷ $5,505,000K
= 95.73%
The gross profit margin of Weatherford International PLC has shown a positive trend over the past five years, starting at 48.28% as of December 31, 2020, and consistently improving to reach 95.73% as of December 31, 2024. This indicates that the company has been effectively managing its production costs and generating higher revenues from its core operations.
The significant increase in the gross profit margin from 2020 to 2024 reflects improved efficiencies in the company's cost structure and pricing strategies. A higher gross profit margin suggests that Weatherford International PLC is generating more profit per dollar of sales, which is a positive indicator of its operational performance and profitability.
Overall, the steady improvement in the gross profit margin signifies that Weatherford International PLC has been successful in optimizing its operational processes, enhancing its product pricing strategies, and potentially gaining market share within its industry. It is essential for stakeholders to monitor this metric in conjunction with other financial ratios to assess the company's overall financial health and performance.
Peer comparison
Dec 31, 2024