Weatherford International Gross Profit vs. Operating Margin

WFRD Stock  USD 84.38  1.45  1.69%   
Taking into consideration Weatherford International's profitability measurements, Weatherford International PLC is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Weatherford International's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1985-09-30
Previous Quarter
473 M
Current Value
492 M
Quarterly Volatility
539.3 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Weatherford International's Operating Cash Flow Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 94.93, whereas EV To Sales is forecasted to decline to 1.51. At present, Weatherford International's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 471.4 M, whereas Total Other Income Expense Net is projected to grow to (298.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.360.3389
Notably Up
Slightly volatile
For Weatherford International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weatherford International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Weatherford International PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weatherford International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Weatherford International PLC over time as well as its relative position and ranking within its peers.
  

Weatherford International's Revenue Breakdown by Earning Segment

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Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Weatherford International. If investors know Weatherford will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Weatherford International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.242
Dividend Share
0.25
Earnings Share
7.15
Revenue Per Share
75.912
Quarterly Revenue Growth
0.073
The market value of Weatherford International is measured differently than its book value, which is the value of Weatherford that is recorded on the company's balance sheet. Investors also form their own opinion of Weatherford International's value that differs from its market value or its book value, called intrinsic value, which is Weatherford International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Weatherford International's market value can be influenced by many factors that don't directly affect Weatherford International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Weatherford International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Weatherford International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Weatherford International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Weatherford International Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Weatherford International's current stock value. Our valuation model uses many indicators to compare Weatherford International value to that of its competitors to determine the firm's financial worth.
Weatherford International PLC is rated second in gross profit category among its peers. It is rated fourth in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Weatherford International PLC is about  7,600,000,000 . At present, Weatherford International's Gross Profit is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Weatherford International by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Weatherford Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Weatherford International

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.31 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Weatherford International

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.17 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Weatherford Operating Margin Comparison

Weatherford International is currently under evaluation in operating margin category among its peers.

Weatherford International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Weatherford International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weatherford International will eventually generate negative long term returns. The profitability progress is the general direction of Weatherford International's change in net profit over the period of time. It can combine multiple indicators of Weatherford International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-28 M-29.4 M
Operating Income820 M861 M
Income Before Tax506 M531.3 M
Total Other Income Expense Net-314 M-298.3 M
Net Income449 M471.4 M
Income Tax Expense-57 M-54.1 M
Net Interest Income-131 M-137.6 M
Net Income From Continuing Ops378 M396.9 M
Net Income Applicable To Common Shares29.9 M31.4 M
Non Operating Income Net Other-109.2 M-114.7 M
Interest Income59 M49.5 M
Change To Netincome26.1 M24.8 M
Net Income Per Share 5.79  6.08 
Income Quality 1.85  1.95 
Net Income Per E B T 0.82  0.66 

Weatherford Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Weatherford International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Weatherford International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Weatherford International's important profitability drivers and their relationship over time.

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When determining whether Weatherford International is a strong investment it is important to analyze Weatherford International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Weatherford International's future performance. For an informed investment choice regarding Weatherford Stock, refer to the following important reports:
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You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Weatherford International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Weatherford International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Weatherford International's income statement, its balance sheet, and the statement of cash flows.
Potential Weatherford International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Weatherford International investors may work on each financial statement separately, they are all related. The changes in Weatherford International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Weatherford International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.