Valaris Ltd (VAL)
Total 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 |
| Total assets | US$ in thousands | 4,419,800 | 4,322,200 | 2,860,300 | 2,609,200 | 12,873,200 |
| Total asset turnover | 0.53 | 0.41 | 0.56 | 0.47 | 0.11 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,362,600K ÷ $4,419,800K
= 0.53
Total asset turnover is a measure of how efficiently a company is utilizing its assets to generate revenue. In the case of Valaris Ltd, the total asset turnover has shown significant improvement over the years.
In 2020, the total asset turnover was low at 0.11, indicating that the company was not effectively using its assets to generate revenue. However, by the end of 2024, the total asset turnover had increased to 0.53, suggesting a substantial enhancement in asset utilization efficiency.
The upward trend in total asset turnover from 2020 to 2024 indicates that Valaris Ltd has been able to generate more revenue per dollar of assets employed, demonstrating improved operational efficiency and potentially better management of its asset base. This trend is positive as it shows the company's ability to generate more sales from its asset base, which can lead to higher profitability and shareholder value.
Peer comparison
Dec 31, 2024