Valaris Ltd (VAL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,784,200 | 1,602,500 | 1,427,200 | 2,053,200 | 1,705,400 |
| Property, plant and equipment | US$ in thousands | 1,633,800 | 977,200 | 10,960,500 | 15,096,900 | 12,616,200 |
| Fixed asset turnover | 1.09 | 1.64 | 0.13 | 0.14 | 0.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,784,200K ÷ $1,633,800K
= 1.09
Valaris Ltd's fixed asset turnover has been fluctuating over the past three years. In 2023, the fixed asset turnover ratio decreased to 1.09 from 1.64 in 2022, indicating a decrease in the efficiency of generating revenue from fixed assets. However, compared to 2021 where the ratio was 1.38, there has been a noticeable decline in the efficiency of utilizing fixed assets for revenue generation. This may suggest potential issues with asset utilization or revenue generation strategies that the company may need to address to improve its operational performance. It is important for Valaris Ltd to closely monitor and analyze the factors contributing to this decline to make informed decisions for enhancing the company's efficiency in utilizing its fixed assets.
Peer comparison
Dec 31, 2023