Weatherford International PLC (WFRD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — |
| 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 | — | — | — |
| 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 | — | — | — |
Weatherford International plc's solvency ratios have shown some fluctuations over the past eight quarters. The debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, has generally trended downwards from 0.56 in Q1 2022 to 0.41 in Q4 2023, suggesting an improvement in the company's ability to cover its debt obligations with its assets.
The debt-to-capital ratio, reflecting the proportion of the company's capital that is funded by debt, has also demonstrated a decreasing trend over the same period, declining from 0.87 in Q1 2022 to 0.69 in Q4 2023. This indicates that Weatherford International plc has been reducing its reliance on debt to finance its operations and investments.
On the other hand, the debt-to-equity ratio, which reveals the extent to which the company's operations are financed by debt relative to shareholder equity, has fluctuated significantly, ranging from 2.23 in Q4 2022 to 6.60 in Q1 2022. These fluctuations suggest a varying level of financial risk and leverage in the company's capital structure.
Moreover, the financial leverage ratio, a measure of the company's overall financial risk that considers all of its liabilities, has exhibited a similar fluctuating pattern, ranging from 5.48 in Q4 2022 to 11.83 in Q1 2022. This highlights the changing degree of leverage and risk in Weatherford International plc's financial position.
Overall, while the debt-to-assets and debt-to-capital ratios have shown improvements, the significant fluctuations in the debt-to-equity and financial leverage ratios indicate varying levels of financial risk and leverage in the company's capital structure over the past eight quarters. It would be important for stakeholders to continue monitoring these solvency ratios to assess Weatherford International plc's financial health and risk management practices.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Weatherford International plc has shown a steady improvement over the past eight quarters, indicating the company's ability to meet its interest obligations from its operating profits.
In Q1 2022, the interest coverage ratio was at its lowest point of 0.70, suggesting a higher risk of default on interest payments. However, this ratio has since been on an upward trend, reaching 6.67 in Q4 2023, reflecting a much stronger ability to cover interest expenses.
This improvement in the interest coverage ratio is a positive signal for Weatherford International plc, indicating better financial health and reduced financial risk. It suggests that the company's operating profits are increasingly able to comfortably cover its interest expenses, which is essential for long-term financial sustainability and solvency.