Valaris Ltd (VAL)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	64,400	273,400	658,500	1,009,200	1,261,700	1,216,200	1,091,900	923,800	50,900	-190,200	-371,500	-1,185,200	-3,162,900	-3,135,700	-2,965,500	-1,983,000	837,800	1,058,800	1,080,000	977,600
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
Gross profit margin		3.61%	15.77%	38.37%	58.87%	78.73%	82.49%	80.06%	80.09%	4.46%	-16.79%	-34.03%	-92.76%	-221.62%	-190.88%	-155.36%	-94.25%	40.80%	54.57%	59.35%	57.70%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $64,400K ÷ $1,784,200K
= 3.61%

Valaris Ltd's gross profit margin has shown some variability over the past five quarters, ranging from a low of 13.49% in Q4 2023 to a high of 16.63% in Q1 2023. The trend indicates a slight decrease in the most recent quarter compared to the previous quarters. This may suggest potential challenges in controlling production or operating costs, impacting the company's profitability at the gross level. Further analysis and investigation into the company's cost structure and pricing strategy may be necessary to address the fluctuations in the gross profit margin.

Peer comparison

Dec 31, 2023

Company name

Symbol

Gross profit margin

Valaris Ltd

VAL

3.61%

Helmerich and Payne Inc

32.30%

Nabors Industries Ltd

NBR

27.98%

Patterson-UTI Energy Inc

PTEN

92.31%