Weatherford International PLC (WFRD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 938,000 | 956,000 | 931,000 | 868,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 146,000 | 336,000 | 329,000 | 319,000 | 307,000 | 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 |
| Interest coverage | 6.42 | 2.85 | 2.83 | 2.72 | 2.67 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $938,000K ÷ $146,000K
= 6.42
The interest coverage ratio of Weatherford International PLC has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt, with higher ratios indicating a stronger ability to cover interest expenses.
The interest coverage ratios for Weatherford International PLC during the earlier dates, ranging from March 31, 2020, to June 30, 2021, were negative, indicating that the company did not generate enough operating income to cover its interest expenses during those periods. This could be a concerning sign for creditors and investors, as negative ratios suggest a higher risk of default on debt obligations.
From September 30, 2021, there was a slight improvement with the interest coverage ratios moving above zero. However, the ratios remained relatively low, indicating that the company was still facing challenges in covering its interest payments from its operating income.
From March 31, 2022, to December 31, 2024, the interest coverage ratios continued to increase gradually, reflecting a positive trend in the company's ability to cover its interest expenses. While the ratios improved over this period, they remained below levels that would be considered strong and comfortable for creditors and investors.
Overall, based on the provided data, Weatherford International PLC experienced a challenging period with negative interest coverage ratios in the earlier years, signaling financial difficulties. However, there was a positive trend in the later years, with the ratios moving into positive territory, indicating some improvement in the company's ability to meet its interest obligations.
Peer comparison
Dec 31, 2024