Weatherford International PLC (WFRD)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 417,000 | 349,000 | 254,000 | 178,000 | 26,000 | -207,000 | -330,000 | -414,000 | -450,000 | -489,000 | -568,000 | -1,071,000 | -1,921,000 | 3,558,000 | 2,911,000 | 3,176,000 | 3,661,000 | -3,721,000 | -3,099,000 | -3,047,000 |
| Total stockholders’ equity | US$ in thousands | 924,000 | 742,000 | 645,000 | 567,000 | 535,000 | 453,000 | 466,000 | 396,000 | 472,000 | 621,000 | 726,000 | 787,000 | 907,000 | 1,087,000 | 1,267,000 | 1,819,000 | 2,880,000 | -5,262,000 | -4,426,000 | -4,145,000 |
| ROE | 45.13% | 47.04% | 39.38% | 31.39% | 4.86% | -45.70% | -70.82% | -104.55% | -95.34% | -78.74% | -78.24% | -136.09% | -211.80% | 327.32% | 229.76% | 174.60% | 127.12% | — | — | — |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $417,000K ÷ $924,000K
= 45.13%
Weatherford International plc has shown a significant improvement in return on equity (ROE) over the past few quarters. The ROE increased from 4.86% in Q4 2022 to 45.13% in Q4 2023, indicating a strong upward trend. This suggests that the company has been able to generate more profit with the shareholders' equity in place.
The ROE fluctuated throughout the quarters in 2023, with Q3 2023 recording the highest ROE of 47.04% and Q1 2023 the lowest at 31.39%. These fluctuations may indicate variations in profitability and efficiency in the utilization of shareholders' equity during these periods.
It is worth noting the drastic improvement from negative ROE figures in 2022 (Q3 and Q2) to positive figures in 2023, reflecting a turnaround in the company's financial performance. The negative ROE in 2022 indicates that the company was not generating sufficient profit to cover the shareholders' equity, whereas the positive ROE in 2023 signifies a more profitable operation.
Overall, the increasing trend in ROE for Weatherford International plc is a positive indicator of the company's improving financial performance and efficiency in utilizing shareholders' equity to generate profits.
Peer comparison
Dec 31, 2023