Valaris Ltd (VAL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,419,800 | 4,322,200 | 2,860,300 | 2,609,200 | 12,873,200 |
| Operating ROA | 7.97% | 1.24% | 10.74% | -34.57% | -33.67% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $352,300K ÷ $4,419,800K
= 7.97%
The operating return on assets (operating ROA) for Valaris Ltd has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the operating ROA was at -33.67%, indicating that for that period, the company's operating income generated was not sufficient to cover its assets, which may signify inefficiency or financial challenges.
The operating ROA worsened slightly to -34.57% by December 31, 2021, suggesting a further decline in the company's ability to generate profits from its assets effectively.
However, a positive turn was seen by December 31, 2022, with the operating ROA reaching 10.74%. This implies that the company significantly improved its operational efficiency and profitability, generating a higher return on its assets.
By December 31, 2023, the operating ROA decreased to 1.24%, indicating a slowdown in the effectiveness of the company's asset utilization in generating profits compared to the previous year.
The trend reversed again by December 31, 2024, as the operating ROA increased to 7.97%, showcasing a recovery in the company's ability to generate profits from its assets.
Overall, the fluctuations in Valaris Ltd's operating ROA over the years reflect varying levels of efficiency in utilizing its assets to generate operating income, with improvements and setbacks observed during the period under review.
Peer comparison
Dec 31, 2024