Weatherford International PLC (WFRD)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 7,293,000 | 6,324,000 | 6,381,000 | 6,519,000 |
| 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 |
| Financial leverage ratio | 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 | 2.53 | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,068,000K ÷ $924,000K
= 5.48
Weatherford International plc has been experiencing a fluctuating financial leverage ratio over the past few quarters. The financial leverage ratio, which measures the extent of a company's debt financing relative to its equity, has shown an increasing trend from Q4 2022 to Q1 2023. This indicates that the company has been relying more on debt to finance its operations and investments compared to its equity.
The financial leverage ratio stood at 5.48 in Q4 2023, reflecting a lower level of debt relative to equity compared to the previous quarter. However, the ratio has been on an upward trajectory since Q4 2022 when it was at 8.82, indicating a significant increase in leverage during this period.
The ratios above 8 in Q1 and Q2 2022 suggests that Weatherford International plc had a high level of debt compared to equity, which could potentially indicate increased financial risk. The highest financial leverage ratio was observed in Q1 2022 at 11.83, highlighting the peak leverage level during the period under review.
Overall, the trend in Weatherford International plc's financial leverage ratio indicates a reliance on debt financing, potentially signaling a higher level of financial risk and the need for careful management of debt levels to ensure financial stability in the long term.
Peer comparison
Dec 31, 2023