Valaris Ltd (VAL)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 865,400 | 176,500 | -4,855,500 | -198,000 | -639,700 |
| Revenue | US$ in thousands | 1,784,200 | 1,602,500 | 1,427,200 | 2,053,200 | 1,705,400 |
| Net profit margin | 48.50% | 11.01% | -340.21% | -9.64% | -37.51% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $865,400K ÷ $1,784,200K
= 48.50%
Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into actual profit after accounting for all expenses. Valaris Ltd's net profit margin has shown significant fluctuations over the past three years. In 2023, the company's net profit margin was 48.50%, reflecting a substantial increase from the previous year's 11.01%. This significant improvement suggests that Valaris Ltd was able to effectively control costs and enhance profitability in 2023. On the other hand, in 2021, the company reported a negative net profit margin of -365.14%, indicating that expenses exceeded revenues, resulting in a substantial loss. Overall, the positive trend in net profit margin from 2021 to 2023 indicates an improvement in Valaris Ltd's profitability and efficiency in managing its financial resources.
Peer comparison
Dec 31, 2023