Valaris Ltd (VAL)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 41,100 | 1,237,500 | -3,159,900 | -45,700 | 804,400 |
| Revenue | US$ in thousands | 1,784,200 | 1,602,500 | 1,427,200 | 2,053,200 | 1,705,400 |
| Gross profit margin | 2.30% | 77.22% | -221.41% | -2.23% | 47.17% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $41,100K ÷ $1,784,200K
= 2.30%
Valaris Ltd's gross profit margin has exhibited relatively consistent performance over the past three years. In 2023, the gross profit margin stood at 13.49%, a slight decrease from 13.68% in 2022 but still higher than the 12.97% reported in 2021. This indicates that the company is effective in controlling its direct production costs and generating profits from its core business activities. However, a closer examination of the factors affecting the gross profit margin, such as changes in pricing strategies, cost management practices, or shifts in the sales mix, would provide further insights into the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023