Weatherford International PLC (WFRD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 820,000 | 412,000 | 116,000 | -1,486,000 | 900,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 924,000 | 535,000 | 472,000 | 907,000 | 2,880,000 |
| Return on total capital | 88.74% | 77.01% | 24.58% | -163.84% | 31.25% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $820,000K ÷ ($—K + $924,000K)
= 88.74%
Weatherford International plc's return on total capital has shown a positive trend over the last three years. The return on total capital increased from 3.76% in 2021 to 14.74% in 2022, and further improved to 27.48% in 2023. This indicates that the company is becoming more efficient in generating returns from its total capital employed. The significant increase in the return on total capital demonstrates an improvement in the company's profitability and effectiveness in utilizing its capital resources to generate earnings for its stakeholders. Overall, the upward trend in return on total capital reflects positively on Weatherford International plc's financial performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2023