Valaris Ltd (VAL)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 53,500 | 56,300 | 101,300 | 95,600 | 37,200 | -24,000 | -82,500 | -57,200 | -854,800 | -1,003,800 | -1,101,300 | -2,130,200 | -4,334,500 | -4,358,500 | -4,500,300 | -3,638,500 | -668,000 | -585,000 | -390,700 | -265,900 |
| Total assets | US$ in thousands | 4,322,200 | 3,484,900 | 3,088,400 | 2,951,200 | 2,860,300 | 2,821,200 | 2,760,800 | 2,637,700 | 2,603,100 | 2,602,500 | 2,601,700 | 11,946,900 | 12,873,200 | 12,911,200 | 13,038,900 | 14,025,100 | 16,931,200 | 17,230,600 | 18,440,100 | 13,863,000 |
| Operating ROA | 1.24% | 1.62% | 3.28% | 3.24% | 1.30% | -0.85% | -2.99% | -2.17% | -32.84% | -38.57% | -42.33% | -17.83% | -33.67% | -33.76% | -34.51% | -25.94% | -3.95% | -3.40% | -2.12% | -1.92% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $53,500K ÷ $4,322,200K
= 1.24%
Operating Return on Assets (Operating ROA) is a key financial metric that indicates how efficiently a company is generating operating profits from its assets. It is calculated by dividing operating income by average total assets. Looking at the historical data for Valaris Ltd, we observe fluctuations in the operating ROA over the past five quarters.
In Q1 2023, Valaris Ltd achieved an operating ROA of 3.61%, representing a peak in performance during the period under review. This indicates that the company generated approximately $3.61 in operating income for every $100 of average total assets employed. The high operating ROA in Q1 2023 suggests that Valaris effectively utilized its assets to generate operating profits.
Subsequently, there was a decline in operating ROA in Q2 2023 to 2.82%, followed by a further decrease in Q3 2023 to 1.23%. These declines may indicate challenges or inefficiencies in the company's operations or asset utilization during these periods.
However, in Q4 2023, the operating ROA improved to 0.93%, indicating a partial recovery from the lower levels seen in the previous two quarters. Despite the improvement, the operating ROA in Q4 2023 remained below the levels achieved in Q1 2023.
Comparing the latest operating ROA with the data from the same quarter of the previous year (Q4 2022), we see a slight decrease from 1.65% to 0.93%. This decline suggests a potential decrease in the company's operating efficiency or profitability over the one-year period.
Overall, the trend in Valaris Ltd's operating ROA shows variability, with fluctuations in performance levels over the quarters analyzed. Further analysis of the company's operating income and asset management practices may be necessary to fully understand the factors driving these fluctuations in the operating ROA.
Peer comparison
Dec 31, 2023