Weatherford International PLC (WFRD)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 820,000 | 773,000 | 676,000 | 579,000 | 412,000 | 276,000 | 226,000 | 147,000 | 116,000 | -24,000 | -155,000 | -677,000 | -1,486,000 | -1,487,000 | -1,874,000 | -1,495,000 | -974,000 | -2,825,000 | -2,391,000 | -2,346,000 |
| Total assets | US$ in thousands | 5,068,000 | 4,895,000 | 4,648,000 | 4,709,000 | 4,720,000 | 4,707,000 | 4,735,000 | 4,684,000 | 4,774,000 | 5,148,000 | 5,160,000 | 5,295,000 | 5,434,000 | 5,664,000 | 5,409,000 | 6,165,000 | 7,293,000 | 6,324,000 | 6,381,000 | 6,519,000 |
| Operating ROA | 16.18% | 15.79% | 14.54% | 12.30% | 8.73% | 5.86% | 4.77% | 3.14% | 2.43% | -0.47% | -3.00% | -12.79% | -27.35% | -26.25% | -34.65% | -24.25% | -13.36% | -44.67% | -37.47% | -35.99% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $820,000K ÷ $5,068,000K
= 16.18%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets utilized in its operations. It is calculated by dividing operating income by average total assets.
Weatherford International plc's operating ROA has shown a consistent improvement over the past eight quarters. Starting at 3.57% in Q1 2022, the ratio has steadily increased to reach 16.18% in Q4 2023. This indicates that the company has been able to generate higher operating profits relative to its total assets over time.
The progressive growth in operating ROA reflects improved operational efficiency and effectiveness in utilizing the company's assets to generate revenue. This steady improvement suggests that Weatherford International plc has been successful in enhancing its operational performance and profitability, which is a positive sign for investors and stakeholders.
The average operating ROA for the latest four quarters stands at 14.22%, indicating that, on average, Weatherford International plc is generating a return of 14.22 cents for every dollar of assets employed in its operations. Overall, the trend in operating ROA for Weatherford International plc is positive and demonstrates the company's ability to generate earnings from its operational activities relative to its asset base.
Peer comparison
Dec 31, 2023