Valaris Ltd (VAL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 7.82% | 7.99% | -5.36% | -40.92% |
| Operating profit margin | 14.91% | 3.00% | 19.16% | -73.21% | -303.71% |
| Pretax margin | 15.67% | 4.72% | 14.03% | -360.39% | -358.53% |
| Net profit margin | 15.80% | 48.50% | 11.01% | -364.69% | -340.36% |
Valaris Ltd's profitability ratios have shown significant fluctuations over the years. The gross profit margin, which reflects the percentage of revenue remaining after deducting the cost of goods sold, has improved from negative figures in 2020 and 2021 to positive values in 2022, 2023, and notably reaching 100% in 2024, indicating the company's ability to generate profit from its core operations.
The operating profit margin, a measure of operating efficiency and profitability before interest and taxes, has also shown improvement, moving from negative percentages in 2020 and 2021 to positive figures in 2022, 2023, and 2024. This suggests that the company has been able to better control its operating expenses and generate profits.
The pretax margin, which demonstrates the proportion of revenue that translates into pre-tax profits, experienced a drastic turnaround from negative values in 2020 and 2021 to positive percentages in 2022, 2023, and 2024. This indicates that the company has effectively managed its pre-tax earnings.
Finally, the net profit margin, which represents the proportion of revenue that results in net income after all expenses have been deducted, has also shown improvement over the years. After posting negative values in 2020 and 2021, the net profit margin turned positive in 2022 and significantly increased in 2023, before slightly decreasing in 2024. This demonstrates that Valaris Ltd has been able to enhance its bottom line profitability.
Overall, the trend in profitability ratios for Valaris Ltd indicates a positive shift towards profitability and efficient management of costs over the years, although some fluctuations are observed in certain periods. These improvements suggest that the company is making progress in enhancing its overall financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.97% | 1.24% | 10.74% | -34.57% | -33.67% |
| Return on assets (ROA) | 8.45% | 20.02% | 6.17% | -172.20% | -37.73% |
| Return on total capital | 20.33% | 7.70% | 20.82% | -414.91% | -110.15% |
| Return on equity (ROE) | 16.68% | 43.54% | 13.60% | -423.55% | -111.04% |
Based on the provided data for Valaris Ltd, the company's profitability ratios demonstrate significant fluctuations over the years.
- Operating return on assets (Operating ROA) showed a notable improvement from negative values in 2020 and 2021 to positive figures in 2022, 2023, and 2024. This indicates that the company was able to generate a profit from its core operations relative to its total assets in the latter years.
- Return on assets (ROA) also displayed a similar trend, with negative values in 2020 and 2021 turning positive in 2022, 2023, and 2024. This metric reflects the company's ability to generate profits from its assets, showing an improvement in overall asset efficiency.
- Return on total capital exhibited a dramatic recovery, transitioning from significant negative values in 2020 and 2021 to positive results in 2022, 2023, and 2024. This metric highlights the company's capability to generate returns on the total capital invested in the business.
- Return on equity (ROE) portrayed a similar pattern, with substantial negative values in 2020 and 2021 followed by positive returns in 2022, 2023, and 2024. This metric signifies the company's ability to generate returns for its shareholders based on their equity investments.
Overall, while Valaris Ltd faced challenges in previous years, the improving profitability ratios indicate a positive turnaround in the company's financial performance, demonstrating enhanced operational efficiency and value creation for shareholders in the more recent years.