Weatherford International PLC (WFRD)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,159,000 | 5,188,000 | 5,111,000 | 5,090,000 | 5,068,000 | 4,895,000 | 4,648,000 | 4,709,000 | 4,720,000 | 4,707,000 | 4,735,000 | 4,684,000 | 4,774,000 | 5,148,000 | 5,160,000 | 5,295,000 | 5,434,000 | 5,664,000 | 5,409,000 | 6,165,000 |
| Total stockholders’ equity | US$ in thousands | 1,285,000 | 1,345,000 | 1,228,000 | 1,091,000 | 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 |
| Financial leverage ratio | 4.01 | 3.86 | 4.16 | 4.67 | 5.48 | 6.60 | 7.21 | 8.31 | 8.82 | 10.39 | 10.16 | 11.83 | 10.11 | 8.29 | 7.11 | 6.73 | 5.99 | 5.21 | 4.27 | 3.39 |
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 a fluctuating trend over the past few years. The ratio increased from 3.39 as of March 31, 2020, to a peak of 11.83 as of March 31, 2022, indicating an escalating level of financial leverage during this period. However, after reaching its peak, the ratio started to decline gradually.
As of December 31, 2024, the financial leverage ratio stood at 4.01. This suggests that the company's reliance on debt financing relative to equity has decreased from the peak levels observed in 2022. Nonetheless, the ratio is still above the levels seen in the earlier years, indicating that Weatherford International PLC continues to maintain a significant level of financial leverage in its capital structure.
The decreasing trend in the financial leverage ratio from 2022 onwards could potentially indicate efforts by the company to deleverage or restructure its debt obligations. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.
Peer comparison
Dec 31, 2024