Weatherford International PLC (WFRD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 938,000 | 820,000 | 412,000 | 116,000 | -1,486,000 |
| Interest expense | US$ in thousands | 102,000 | 123,000 | 179,000 | 15,000 | 15,000 |
| Interest coverage | 9.20 | 6.67 | 2.30 | 7.73 | -99.07 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $938,000K ÷ $102,000K
= 9.20
Weatherford International PLC's interest coverage has shown significant volatility over the past five years. The company experienced a notable decline in interest coverage in 2020, with a ratio of -99.07, indicating that its earnings were insufficient to cover its interest expenses during that period.
However, Weatherford International PLC managed to improve its interest coverage in the subsequent years. By the end of 2021, the interest coverage ratio had recovered to 7.73, suggesting a healthier ability to meet interest obligations from its earnings.
In 2022, there was a slight decrease in the interest coverage ratio to 2.30, indicating a potential strain on the company's ability to cover its interest expenses comfortably.
The following year, Weatherford International PLC saw an improvement in its interest coverage ratio to 6.67, indicating a more solid financial position compared to the previous year.
By the end of 2024, the company's interest coverage ratio increased further to 9.20, reflecting a stronger ability to service its interest payments with its earnings.
Overall, Weatherford International PLC has shown varying levels of interest coverage over the years, with improvements in later years compared to the significant decline observed in 2020. Investors and stakeholders should continue to monitor the company's interest coverage ratio to assess its financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024