Valaris Ltd (VAL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 370,200 | 84,200 | 224,900 | -4,440,000 | -5,117,000 |
| Revenue | US$ in thousands | 2,362,600 | 1,784,200 | 1,602,500 | 1,232,000 | 1,427,200 |
| Pretax margin | 15.67% | 4.72% | 14.03% | -360.39% | -358.53% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $370,200K ÷ $2,362,600K
= 15.67%
The pretax margin of Valaris Ltd has shown significant improvement over the years based on the provided data. The company's pretax margin was negative in 2020 and 2021, at -358.53% and -360.39% respectively, indicating that the company's operating expenses and losses exceeded its revenues during those periods.
However, there was a notable turnaround in the company's financial performance in 2022, with a pretax margin of 14.03%, suggesting that Valaris was able to generate profits before accounting for taxes for the first time in recent years. This positive trend continued in 2023 and 2024, with pretax margins of 4.72% and 15.67% respectively.
The increasing pretax margin indicates that Valaris Ltd has been able to improve cost management, increase revenues, or a combination of both, leading to a more sustainable and profitable operating model. This trend demonstrates the company's efforts to enhance its profitability and financial health, positioning it on a more solid foundation for future growth and success.
Peer comparison
Dec 31, 2024