Valaris Ltd (VAL)
Total asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,784,200 | 1,734,000 | 1,716,100 | 1,714,200 | 1,602,500 | 1,474,400 | 1,363,900 | 1,153,400 | 1,142,100 | 1,133,100 | 1,091,700 | 1,277,700 | 1,427,200 | 1,642,800 | 1,908,800 | 2,103,900 | 2,053,200 | 1,940,100 | 1,819,700 | 1,694,300 |
| Total assets | US$ in thousands | 4,322,200 | 3,484,900 | 3,088,400 | 2,951,200 | 2,860,300 | 2,821,200 | 2,760,800 | 2,637,700 | 2,603,100 | 2,602,500 | 2,601,700 | 11,946,900 | 12,873,200 | 12,911,200 | 13,038,900 | 14,025,100 | 16,931,200 | 17,230,600 | 18,440,100 | 13,863,000 |
| Total asset turnover | 0.41 | 0.50 | 0.56 | 0.58 | 0.56 | 0.52 | 0.49 | 0.44 | 0.44 | 0.44 | 0.42 | 0.11 | 0.11 | 0.13 | 0.15 | 0.15 | 0.12 | 0.11 | 0.10 | 0.12 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,784,200K ÷ $4,322,200K
= 0.41
The total asset turnover of Valaris Ltd has exhibited a declining trend over the past five quarters, indicating a decrease in the company's efficiency in generating sales revenue from its total assets. The ratio, which measures the firm's ability to utilize its assets to generate revenue, decreased from 0.56 in Q4 2022 to 0.41 in Q4 2023. This suggests a potential inefficiency in asset utilization during this period. It is important for the company to assess the reasons behind this decline and implement strategies to improve asset turnover in order to enhance overall operational efficiency and financial performance.
Peer comparison
Dec 31, 2023