Weatherford International PLC (WFRD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 938,000 | 820,000 | 412,000 | 116,000 | -1,486,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,285,000 | 924,000 | 535,000 | 472,000 | 907,000 |
| Return on total capital | 73.00% | 88.74% | 77.01% | 24.58% | -163.84% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $938,000K ÷ ($—K + $1,285,000K)
= 73.00%
The return on total capital for Weatherford International PLC has shown significant fluctuations over the years based on the provided data.
As of December 31, 2020, the company had a negative return on total capital of -163.84%, indicating that the capital invested did not generate a positive return during that period.
By December 31, 2021, there was a notable improvement with a return on total capital of 24.58%, suggesting a turnaround in the company's capital efficiency.
The following years saw a remarkable increase in return on total capital, reaching 77.01% by December 31, 2022, further improving to 88.74% by December 31, 2023.
However, by December 31, 2024, the return on total capital moderated slightly to 73.00%. Overall, the trend indicates a positive trajectory in the company's ability to generate returns on the total capital invested.
Peer comparison
Dec 31, 2024