Weatherford International PLC (WFRD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 938,000 | 956,000 | 931,000 | 868,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 73.00% | 71.08% | 75.81% | 79.56% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $938,000K ÷ ($—K + $1,285,000K)
= 73.00%
Weatherford International PLC's return on total capital has shown a significant improvement over the past few years. The company experienced severely negative returns in the first half of 2020, indicating financial distress and inefficiency in capital allocation. However, starting from the end of 2021, the return on total capital turned positive, with a notable rebound in profitability.
From March 2022 onwards, the return on total capital has been steadily increasing, reaching over 100% by September 2023, signifying a substantial enhancement in the company's ability to generate profits in relation to the total capital employed. This upward trend continued through the end of 2024, with the return on total capital consistently exceeding 70%.
The positive trend in return on total capital indicates that Weatherford International PLC has been more effective in utilizing its capital resources to generate profits and create value for its shareholders. This improvement suggests a positive shift in the company's operational and financial performance, potentially leading to enhanced financial stability and sustainable growth in the future.
Peer comparison
Dec 31, 2024