Valaris Ltd (VAL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 373,400 | 865,400 | 176,500 | -4,493,000 | -4,857,600 |
| Total assets | US$ in thousands | 4,419,800 | 4,322,200 | 2,860,300 | 2,609,200 | 12,873,200 |
| ROA | 8.45% | 20.02% | 6.17% | -172.20% | -37.73% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $373,400K ÷ $4,419,800K
= 8.45%
The return on assets (ROA) of Valaris Ltd has shown varied performance over the years based on the provided data.
1. In December 31, 2020, the ROA was -37.73%, indicating that the company generated a negative return on its assets. This suggests that Valaris Ltd experienced challenges in utilizing its assets efficiently to generate profits during that period.
2. By December 31, 2021, the ROA deteriorated further to -172.20%, reflecting a significant decline in asset profitability. This sharp decrease may indicate issues with asset management and operational performance within the company.
3. However, there was a notable turnaround by December 31, 2022, with an ROA of 6.17%, suggesting that Valaris Ltd improved its asset utilization and profitability. This improvement could be attributed to strategic initiatives or operational adjustments implemented by the company.
4. The positive trend continued into December 31, 2023, as the ROA increased to 20.02%, indicating a strong performance in generating returns from its assets. This significant improvement suggests that Valaris Ltd effectively maximized its asset efficiency and profitability during that period.
5. By December 31, 2024, the ROA slightly decreased to 8.45%, but still remained positive. This indicates that the company maintained a relatively good performance in utilizing its assets to generate returns, although the profitability slightly decreased compared to the previous year.
Overall, the fluctuating ROA values illustrate the evolving financial performance of Valaris Ltd and highlight the importance of efficient asset utilization in driving profitability and shareholder value.
Peer comparison
Dec 31, 2024