Weatherford International PLC (WFRD)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 been gradually decreasing over the past eight quarters, indicating a positive trend in the company's capital structure. The ratio decreased from 0.87 in Q1 2022 to 0.69 in Q4 2023. This decline suggests that Weatherford International plc has been reducing its reliance on debt to finance its operations and investments compared to its total capital.
A lower debt-to-capital ratio typically indicates a lower financial risk for the company as it implies a higher proportion of equity in the capital structure relative to debt. This may make the company more resilient to economic downturns or interest rate fluctuations. It also signals that the company has been effectively managing its debt levels and working towards a more sustainable financing strategy.
Overall, the decreasing trend in Weatherford International plc's debt-to-capital ratio reflects a positive development in its financial health and indicates that the company may be on a path towards a stronger and more stable financial position.
Peer comparison
Dec 31, 2023