Weatherford International PLC (WFRD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 5.48 | 8.82 | 10.11 | 5.99 | 2.53 |
The solvency ratios of Weatherford International plc show a declining trend over the past three years, indicating an improvement in the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has decreased from 0.55 in 2021 to 0.41 in 2023, suggesting that the company has reduced its reliance on debt to finance its assets. This indicates a healthier balance between debt and assets on the company's balance sheet.
Similarly, the debt-to-capital ratio has decreased from 0.85 in 2021 to 0.69 in 2023, indicating a decrease in the proportion of debt used to finance the company's operations. This reflects a more conservative capital structure, which may reduce the company's financial risk.
The debt-to-equity ratio has shown a significant improvement, decreasing from 5.54 in 2021 to 2.23 in 2023. This reduction indicates that the company has decreased its reliance on debt financing relative to equity, which is a positive sign for investors and creditors.
The financial leverage ratio has also improved, decreasing from 10.11 in 2021 to 5.48 in 2023. This indicates that the company's financial leverage has decreased over the years, potentially reducing the company's financial risk and improving its financial stability.
Overall, the declining trend in Weatherford International plc's solvency ratios suggests that the company has been successful in managing its debt levels and improving its financial health over the past three years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.67 | 2.30 | 7.73 | -99.07 | 2.49 |
Weatherford International plc's interest coverage has shown a positive trend over the past three years, indicating an improvement in the company's ability to cover its interest expenses.
The interest coverage ratio for the year ending December 31, 2023, stood at 6.67, which indicates that the company generated 6.67 times the amount of earnings before interest and taxes (EBIT) needed to cover its interest expenses for that year. This represents a significant improvement compared to the previous year, where the ratio was 2.42.
Furthermore, the company's interest coverage ratio has shown a substantial improvement from the year ending December 31, 2021, where the ratio was only 0.45. This indicates a significant enhancement in Weatherford International plc's ability to meet its interest obligations through its operating profits.
Overall, the increasing trend in the interest coverage ratio suggests that Weatherford International plc's financial health has strengthened, as the company is better positioned to manage its interest payments with its operating profits.