Weatherford International PLC (WFRD)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	820,000	773,000	676,000	579,000	412,000	276,000	157,000	62,000	21,000	-119,000	-223,000	-742,000	-1,583,000	-1,584,000	-1,929,000	-1,537,000	-974,000	-2,825,000	-2,391,000	-2,346,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		88.74%	104.18%	104.81%	102.12%	77.01%	60.93%	33.69%	15.66%	4.45%	-19.16%	-30.72%	-94.28%	-174.53%	-145.72%	-152.25%	-84.50%	-33.82%	—	—	—

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $820,000K ÷ ($—K + $924,000K)
= 88.74%

Weatherford International plc's return on total capital has been showing a positive trend over the past eight quarters, indicating an improvement in the efficiency of utilizing its capital resources to generate profits. The return on total capital has increased steadily from 5.55% in Q1 2022 to 27.48% in Q4 2023. This upward trajectory suggests that the company has been able to enhance its overall profitability and returns to its capital providers. It is evident that Weatherford International plc has been focusing on optimizing its capital allocation and operational efficiency to drive higher returns. Overall, the consistent improvement in return on total capital reflects positively on the company's financial performance and management effectiveness in maximizing shareholder value.