Weatherford International PLC (WFRD)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 924,000 | 535,000 | 472,000 | 907,000 | 2,880,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $924,000K)
= 0.00
The debt-to-capital ratio of Weatherford International plc has shown a decreasing trend over the past three years. As of December 31, 2023, the ratio stands at 0.69, indicating that debt accounts for approximately 69% of the company's capital structure, while equity represents the remaining 31%. This suggests that the company relies less on debt financing compared to the previous years, which is a positive indication of improved financial health and reduced financial risk. The declining trend in the debt-to-capital ratio may signal that Weatherford International plc is managing its debt levels effectively and becoming less leveraged over time, enhancing its financial stability and resilience. Overall, the decreasing debt-to-capital ratio reflects a potentially stronger financial position for the company.
Peer comparison
Dec 31, 2023