Weatherford International PLC (WFRD)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $924,000K
= 0.00
The debt-to-equity ratio of Weatherford International plc has shown a decreasing trend over the past three years, indicating an improvement in the company's leverage position. As of December 31, 2023, the debt-to-equity ratio stood at 2.23, a significant decrease from 4.50 in 2022 and 5.54 in 2021.
A lower debt-to-equity ratio suggests that the company is relying less on debt financing and has a stronger equity base to support its operations. This could be a positive sign for investors as it may indicate reduced financial risk and improved financial stability.
However, it is important to consider the reasons behind this decrease in the debt-to-equity ratio. Weatherford International plc may have repaid some of its debt obligations, raised additional equity capital, or experienced an increase in shareholder equity. It is advisable to further investigate the company's financial performance and capital structure to gain a deeper understanding of the factors driving this change in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023