Valaris Ltd (VAL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,362,600 | 1,784,200 | 1,602,500 | 1,232,000 | 1,427,200 |
| Property, plant and equipment | US$ in thousands | — | — | 977,200 | 911,400 | 10,996,300 |
| Fixed asset turnover | — | — | 1.64 | 1.35 | 0.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,362,600K ÷ $—K
= —
The fixed asset turnover ratio of Valaris Ltd has shown a significant improvement over the years, indicating better utilization of the company's fixed assets to generate revenue.
In December 2020, the fixed asset turnover ratio was quite low at 0.13, suggesting that the company was not efficiently utilizing its fixed assets to generate sales.
However, by December 2021, there was a substantial increase in the fixed asset turnover ratio to 1.35, indicating a significant improvement in asset utilization efficiency. This trend continued into December 2022, where the ratio further increased to 1.64, demonstrating a continued focus on improving operational efficiency and maximizing revenue generation from fixed assets.
The absence of data for December 2023 and 2024 makes it difficult to assess the trend beyond 2022. However, the consistent improvement in the fixed asset turnover ratio from 2020 to 2022 suggests that Valaris Ltd has been successful in optimizing the use of its fixed assets to drive revenue growth.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on the management's efforts to enhance operational efficiency and maximize the return on investment in fixed assets.
Peer comparison
Dec 31, 2024