Weatherford International PLC (WFRD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 820,000 | 412,000 | 116,000 | -1,486,000 | 900,000 |
| Total assets | US$ in thousands | 5,068,000 | 4,720,000 | 4,774,000 | 5,434,000 | 7,293,000 |
| Operating ROA | 16.18% | 8.73% | 2.43% | -27.35% | 12.34% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $820,000K ÷ $5,068,000K
= 16.18%
Weatherford International plc's operating return on assets (ROA) has shown a positive trend over the past three years. In 2021, the operating ROA stood at 2.43%, showing a relatively low return on assets. However, there was a significant improvement in 2022, with the operating ROA increasing to 9.19%, indicating a better utilization of assets to generate operating income.
The company's performance further improved in 2023, with the operating ROA reaching 16.18%, reflecting a robust ability to generate operating profits relative to its asset base. This substantial growth in operating ROA suggests that Weatherford International plc has been more efficient in using its assets to generate operating income, which is a positive indicator of the company's operational effectiveness and profitability.
Overall, the increasing trend in operating ROA indicates improved operational efficiency and profitability for Weatherford International plc over the three-year period, which bodes well for its financial performance and potential future growth prospects.
Peer comparison
Dec 31, 2023