Weatherford International PLC (WFRD)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 506,000 | 534,000 | 500,000 | 457,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,285,000 | 1,345,000 | 1,228,000 | 1,091,000 | 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 |
| ROE | 39.38% | 39.70% | 40.72% | 41.89% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $506,000K ÷ $1,285,000K
= 39.38%
Weatherford International PLC's return on equity (ROE) has shown significant fluctuations over the reporting periods. The ROE was exceptionally high in the first three quarters of 2020, peaking at 327.32% in September 2020. However, the ROE then turned negative in December 2020 and remained negative for the next several quarters, reaching its lowest point at -211.80% in December 2020.
Subsequently, the company gradually improved its ROE performance, with positive ROE values starting to reappear in the first quarter of 2022. The ROE continued to increase over the following quarters, reaching 39.38% by December 2024.
The positive trend in ROE from 2022 onwards indicates that Weatherford International PLC was able to generate higher returns for its shareholders relative to its equity base. However, the company experienced a period of financial challenges and negative ROE in the late 2020 and early 2021. It is essential for Weatherford International PLC to sustain this positive ROE trend to demonstrate efficient utilization of shareholder funds and overall profitability.
Peer comparison
Dec 31, 2024