Valaris Ltd (VAL)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,362,600 | 139,500 | 128,100 | -66,000 | -584,000 |
| Revenue | US$ in thousands | 2,362,600 | 1,784,200 | 1,602,500 | 1,232,000 | 1,427,200 |
| Gross profit margin | 100.00% | 7.82% | 7.99% | -5.36% | -40.92% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,362,600K ÷ $2,362,600K
= 100.00%
The gross profit margin of Valaris Ltd has shown a significant improvement over the years based on the provided data. Starting at a negative 40.92% on December 31, 2020, the company's gross profit margin improved to negative 5.36% by December 31, 2021. This indicates that the company's cost of goods sold relative to its revenue decreased over this period.
Subsequently, there was a notable turnaround as the gross profit margin turned positive at 7.99% on December 31, 2022, and maintained a similar level at 7.82% by December 31, 2023. This suggests that Valaris Ltd became more efficient in managing its production costs and generating profits from its core operations during these years.
The most recent data point shows a significant jump, with a gross profit margin of 100.00% as of December 31, 2024. This exceptional figure might indicate a one-time event, such as the sale of a major asset or restructuring of the business, which resulted in a sharp increase in gross profit margin.
Overall, the trend in Valaris Ltd's gross profit margin reflects a positive trajectory, moving from significant losses to positive margins and finally to an exceptionally high level in the most recent period. It showcases the company's efforts to improve operational efficiency and profitability over the analyzed period.
Peer comparison
Dec 31, 2024