Valaris Ltd (VAL)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 352,300 | 53,500 | 307,100 | -902,000 | -4,334,500 |
| Revenue | US$ in thousands | 2,362,600 | 1,784,200 | 1,602,500 | 1,232,000 | 1,427,200 |
| Operating profit margin | 14.91% | 3.00% | 19.16% | -73.21% | -303.71% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $352,300K ÷ $2,362,600K
= 14.91%
The operating profit margin of Valaris Ltd has shown significant fluctuations over the past years. In December 2020, the company recorded a negative operating profit margin of -303.71%, indicating that its operating expenses exceeded its gross profit by a substantial margin. This implies inefficiency in cost management and operational performance.
By December 2021, the operating profit margin improved to -73.21%, although it remained negative. This suggests a slight enhancement in operational efficiency but still indicates that the company was not generating sufficient profits from its core operations.
In December 2022, Valaris Ltd was able to achieve a positive operating profit margin of 19.16%, marking a significant turnaround. This improvement indicates that the company successfully managed its operating expenses and increased profitability from its primary business activities.
Subsequently, in December 2023, the operating profit margin decreased to 3.00%, but it remained positive. This may signal some challenges in maintaining the improved profitability levels from the previous year.
By December 2024, Valaris Ltd further enhanced its operating profit margin to 14.91%, demonstrating continued efforts to optimize operational performance and generate healthier profits from its operations. Overall, the fluctuating trend in the operating profit margin reflects the company's progress in addressing cost inefficiencies and enhancing profitability over the analyzed period.
Peer comparison
Dec 31, 2024