Weatherford International PLC (WFRD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Weatherford International PLC has consistently maintained a strong solvency position, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being consistently at 0.00 over the past few years. This shows that the company has a negligible amount of debt relative to its assets, capital, and equity.
However, it is important to note the trend in the financial leverage ratio, which provides insights into the company's overall debt burden and financial risk. The financial leverage ratio has shown a decreasing trend over the years, starting at 3.39 on March 31, 2020, and declining to 4.01 by December 31, 2024. This indicates that Weatherford International has been reducing its reliance on debt to finance its operations, leading to a lower financial risk profile.
Overall, the consistent low levels of debt ratios coupled with the decreasing trend in the financial leverage ratio suggest that Weatherford International PLC has been effectively managing its debt levels and maintaining a strong solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the data provided for Weatherford International PLC, we can see that the interest coverage ratio was negative for most of the periods up to December 31, 2021. This suggests that the company was not generating enough operating income to cover its interest expenses during those periods, which could be a concerning financial situation.
However, starting from March 31, 2022, the interest coverage ratio turned positive and began to show improvement, indicating that Weatherford International PLC's operating income was sufficient to cover its interest expenses. The ratio continued to increase steadily until December 31, 2024, reaching a relatively healthy level of 6.42.
This positive trend in the interest coverage ratio suggests that Weatherford International PLC's financial performance improved over the analyzed periods, leading to a better ability to meet its interest obligations. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to manage its debt efficiently.