Weatherford International PLC (WFRD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 938,000 | 956,000 | 931,000 | 868,000 | 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 |
| Total assets | US$ in thousands | 5,159,000 | 5,188,000 | 5,111,000 | 5,090,000 | 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 |
| Operating ROA | 18.18% | 18.43% | 18.22% | 17.05% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $938,000K ÷ $5,159,000K
= 18.18%
Operating return on assets (ROA) is a key financial ratio that measures a company's operating efficiency in generating profits from its assets. For Weatherford International PLC, the operating ROA has shown a significant improvement over the quarters, indicating enhanced operational performance.
At the beginning of the analyzed period in March 2020, the operating ROA was at a low -24.25%, reflecting poor operational efficiency in utilizing the company's assets to generate profits. However, there was a noticeable downward trend in the operating ROA until September 2021, indicating ongoing operational challenges and inefficiencies within the company.
From March 2022 onwards, there was a reversal in the trend, with the operating ROA turning positive. This change suggests that Weatherford International PLC has been able to improve its operational efficiency and generate better returns from its assets. The operating ROA continued to strengthen steadily, reaching 18.18% by December 2024, which signifies a substantial enhancement in the company's operational performance and profitability.
Overall, the increasing trend in Weatherford International PLC's operating ROA highlights the company's efforts in optimizing its asset utilization and operational effectiveness, leading to improved profitability and potentially indicating positive prospects for future financial performance.
Peer comparison
Dec 31, 2024