Weatherford International PLC (WFRD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.01 | 5.48 | 8.82 | 10.11 | 5.99 |
Based on the provided data, Weatherford International PLC has consistently maintained a strong solvency position over the years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00, indicating that the company has no debt obligations relative to its total assets, capital, or equity during the period from December 31, 2020, to December 31, 2024.
Furthermore, the financial leverage ratio, which measures the company's level of financial leverage or debt relative to its equity, has shown a decreasing trend over the years. It decreased from 5.99 on December 31, 2020, to 4.01 on December 31, 2024. This downward trend suggests that Weatherford International has been gradually reducing its reliance on debt financing and improving its overall financial health and stability.
Overall, the solvency ratios indicate that Weatherford International PLC has been effectively managing its financial obligations and maintaining a solid solvency position, with minimal debt levels and decreasing financial leverage over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.20 | 6.67 | 2.30 | 7.73 | -99.07 |
Weatherford International PLC's interest coverage ratio has exhibited significant fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses, which raises concerns about its financial health and ability to meet debt obligations.
However, there has been a notable improvement in the interest coverage ratio over the subsequent years. By December 31, 2021, the ratio had risen to 7.73, suggesting that the company's operating income was more than sufficient to cover its interest expenses, signaling a positive trend in its financial performance.
Although there was a decline in the interest coverage ratio by December 31, 2022, to 2.30, which may raise some concerns about the company's ability to meet its interest obligations from operating income alone, the ratio improved to 6.67 by December 31, 2023, and further increased to 9.20 by December 31, 2024.
Overall, while Weatherford International PLC experienced a challenging financial situation in 2020, the subsequent years have shown an improvement in the company's ability to cover its interest expenses with operating income, indicating a strengthening financial position and enhanced ability to meet debt obligations.