Valaris Ltd (VAL)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 53,500 | 37,200 | -4,334,500 | -669,800 | -235,900 |
| Revenue | US$ in thousands | 1,784,200 | 1,602,500 | 1,427,200 | 2,053,200 | 1,705,400 |
| Operating profit margin | 3.00% | 2.32% | -303.71% | -32.62% | -13.83% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $53,500K ÷ $1,784,200K
= 3.00%
Valaris Ltd's operating profit margin has shown variability over the past three years. In 2021, the company reported a negative operating profit margin of -12.55%, indicating that its operating expenses exceeded its gross profits, leading to operating losses. However, there was an improvement in 2022, with the operating profit margin increasing to 2.95%, suggesting better control over operating costs and more efficient operations.
In the most recent year, 2023, Valaris Ltd's operating profit margin decreased to 2.25%. This decline may indicate challenges such as increasing operating expenses relative to revenue, pricing pressures, or inefficiencies in operations. It could be beneficial for the company to further analyze its cost structure, revenue streams, and operational efficiency to identify areas for improvement and sustainably enhance its profitability in the future.
Peer comparison
Dec 31, 2023