Weatherford International PLC (WFRD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 820,000 | 773,000 | 676,000 | 579,000 | 412,000 | 276,000 | 157,000 | 62,000 | 21,000 | -119,000 | -223,000 | -742,000 | -1,583,000 | -1,584,000 | -1,929,000 | -1,537,000 | -974,000 | -2,825,000 | -2,391,000 | -2,346,000 |
| Interest expense (ttm) | US$ in thousands | 92,000 | 131,000 | 145,000 | 162,000 | 179,000 | 155,000 | 180,000 | 204,000 | 226,000 | 226,000 | 221,000 | 208,000 | 196,000 | 202,000 | 164,000 | 265,000 | 362,000 | 498,000 | 628,000 | 620,000 |
| Interest coverage | 8.91 | 5.90 | 4.66 | 3.57 | 2.30 | 1.78 | 0.87 | 0.30 | 0.09 | -0.53 | -1.01 | -3.57 | -8.08 | -7.84 | -11.76 | -5.80 | -2.69 | -5.67 | -3.81 | -3.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $820,000K ÷ $92,000K
= 8.91
Based on the data provided for Weatherford International plc's interest coverage ratio over the past eight quarters, there is a clear trend of improvement in the company's ability to cover its interest expenses. The interest coverage ratio has been steadily increasing from 0.70 in Q1 2022 to 6.67 in Q4 2023.
This improvement indicates that Weatherford International plc has been generating more operating income relative to its interest expenses, which is a positive sign for creditors and potential investors. A higher interest coverage ratio is generally seen as a favorable indicator of a company's financial health and ability to meet its debt obligations.
The consistent growth in the interest coverage ratio suggests that Weatherford International plc may have successfully managed its debt levels, improved its profitability, or a combination of both factors over the analyzed period. This trend reflects positively on the company's financial performance and may indicate a stronger ability to withstand financial challenges and uncertainties in the future.
Peer comparison
Dec 31, 2023