Valaris Ltd (VAL)
Total 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 |
| Total assets | US$ in thousands | 4,322,200 | 2,860,300 | 12,873,200 | 16,931,200 | 14,023,700 |
| Total asset turnover | 0.41 | 0.56 | 0.11 | 0.12 | 0.12 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,784,200K ÷ $4,322,200K
= 0.41
Total asset turnover is a measure of a company's ability to generate revenue relative to its total assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate sales.
From the data provided for Valaris Ltd, we observe a fluctuating trend in total asset turnover over the past three years. In 2023, the total asset turnover decreased to 0.41 from 0.56 in 2022, indicating a decrease in the company's efficiency in generating revenue from its total assets. However, it is important to note that the total asset turnover in 2023 is lower than in 2021, when it was 0.47.
This downward trend in total asset turnover from 2022 to 2023 suggests that Valaris Ltd may be facing challenges in optimizing the utilization of its assets to generate revenue. It would be beneficial for the company to further analyze its asset utilization and revenue generation strategies to improve efficiency and profitability in the future.
Peer comparison
Dec 31, 2023