Weatherford International PLC (WFRD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,159,000 | 5,068,000 | 4,720,000 | 4,774,000 | 5,434,000 |
| Total stockholders’ equity | US$ in thousands | 1,285,000 | 924,000 | 535,000 | 472,000 | 907,000 |
| Financial leverage ratio | 4.01 | 5.48 | 8.82 | 10.11 | 5.99 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,159,000K ÷ $1,285,000K
= 4.01
The financial leverage ratio of Weatherford International PLC has shown fluctuations over the past five years. In December 31, 2020, the ratio stood at 5.99, indicating that the company's debt level was approximately 5.99 times its equity. This ratio increased to 10.11 by December 31, 2021, suggesting a significant rise in financial leverage. In the following year, by December 31, 2022, the ratio decreased to 8.82, implying a slight improvement in the company's leverage position.
By December 31, 2023, the financial leverage ratio further decreased to 5.48, indicating a reduction in the company's reliance on debt to finance its operations. The most recent data available as of December 31, 2024, shows a ratio of 4.01, which signifies a continued decline in financial leverage, reflecting potentially enhanced financial stability and reduced risk associated with debt.
Overall, the trend in Weatherford International PLC's financial leverage ratio indicates fluctuating levels of leverage over the period, with a notable reduction in recent years that may suggest a shift towards a more conservative capital structure.
Peer comparison
Dec 31, 2024