Valaris Ltd (VAL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,362,600 | 2,262,000 | 2,074,000 | 1,879,100 | 1,784,200 | 1,734,000 | 1,716,100 | 1,714,200 | 1,602,500 | 1,474,400 | 1,363,900 | 1,243,700 | 1,232,400 | 1,223,400 | 1,182,000 | 1,277,700 | 1,427,200 | 1,642,800 | 1,908,800 | 2,103,900 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 1,159,900 | 1,073,700 | 1,015,500 | 977,200 | 953,600 | 954,700 | 952,300 | 911,400 | 916,200 | 930,200 | 10,122,900 | 10,996,300 | 11,124,000 | 11,238,800 | 12,211,100 |
| Fixed asset turnover | — | — | — | — | — | 1.49 | 1.60 | 1.69 | 1.64 | 1.55 | 1.43 | 1.31 | 1.35 | 1.34 | 1.27 | 0.13 | 0.13 | 0.15 | 0.17 | 0.17 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,362,600K ÷ $—K
= —
The fixed asset turnover ratio of Valaris Ltd has shown a significant improvement over the past few years. From March 31, 2020, where the ratio was at 0.17, to December 31, 2023, where it reached 1.69, the company's efficiency in generating revenue from its fixed assets has increased consistently.
The ratio remained stable at around 0.13 to 0.17 from March 2020 to March 2021, after which there was a sudden spike to 1.27 in June 2021. This increase continued through 2022 and peaked at 1.69 by March 31, 2023. This suggests that Valaris Ltd was able to generate significantly more revenue for every dollar invested in fixed assets during this period.
However, from June 2023 to September 2023, there was a slight decline in the fixed asset turnover ratio, dropping to 1.49. This could indicate either a decrease in revenue generated from fixed assets or a slight increase in the value of fixed assets during this period.
The fixed asset turnover ratio data for the quarters ending December 31, 2023, and beyond is not available (“—”). It would be important to monitor future financial reports to assess whether the trend of improved efficiency in utilizing fixed assets continues or if there are any changes in the company's asset management strategies.
Peer comparison
Dec 31, 2024