Weatherford International PLC (WFRD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 417,000 | 26,000 | -450,000 | -1,921,000 | 3,661,000 |
| Total assets | US$ in thousands | 5,068,000 | 4,720,000 | 4,774,000 | 5,434,000 | 7,293,000 |
| ROA | 8.23% | 0.55% | -9.43% | -35.35% | 50.20% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $417,000K ÷ $5,068,000K
= 8.23%
Weatherford International plc's return on assets (ROA) has shown significant variability over the past three years, as evidenced by the ROA figures of 8.23% in 2023, 0.55% in 2022, and -9.43% in 2021.
In 2023, the ROA increased substantially to 8.23%, indicating that the company was able to generate a higher level of profit relative to its total assets. This improvement suggests better asset utilization and/or profitability compared to the previous year.
In contrast, the ROA was much lower at 0.55% in 2022, signaling a relatively weaker performance in generating profits from its assets. The company may have faced challenges in optimizing asset efficiency or in generating sufficient returns on its investments during that period.
The most concerning observation is the negative ROA of -9.43% in 2021, which indicates that Weatherford International plc incurred a significant loss relative to its asset base during that year. This negative ROA implies that the company's asset management and profitability were not effectively managed, resulting in a substantial decline in overall financial performance.
Overall, the fluctuating ROA trend of Weatherford International plc suggests varying levels of asset efficiency and profitability over the past three years, highlighting the importance of closely monitoring and analyzing key financial ratios to assess the company's financial health and performance.
Peer comparison
Dec 31, 2023