Weatherford International PLC (WFRD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,068,000 | 4,720,000 | 4,774,000 | 5,434,000 | 7,293,000 |
| Total stockholders’ equity | US$ in thousands | 924,000 | 535,000 | 472,000 | 907,000 | 2,880,000 |
| Financial leverage ratio | 5.48 | 8.82 | 10.11 | 5.99 | 2.53 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,068,000K ÷ $924,000K
= 5.48
The financial leverage ratio of Weatherford International plc has shown a declining trend over the past three years. The ratio decreased from 10.11 in 2021 to 8.82 in 2022 and further dropped to 5.48 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio suggests a lower financial risk as the company is using less debt to fund its operations, which can be seen as a positive sign for investors and creditors. It could also imply that the company has improved its financial position and is managing its capital structure more efficiently. Overall, the decreasing trend in the financial leverage ratio of Weatherford International plc reflects a more conservative approach towards leveraging its operations.
Peer comparison
Dec 31, 2023