Valaris Ltd (VAL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 865,400 | 176,500 | -4,855,500 | -198,000 | -639,700 |
| Total assets | US$ in thousands | 4,322,200 | 2,860,300 | 12,873,200 | 16,931,200 | 14,023,700 |
| ROA | 20.02% | 6.17% | -37.72% | -1.17% | -4.56% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $865,400K ÷ $4,322,200K
= 20.02%
Valaris Ltd's return on assets (ROA) has shown a significant improvement over the past three years. In 2023, the ROA stands at 20.02%, marking a substantial increase from the 6.17% recorded in 2022. It is worth noting that in 2021, the company experienced a negative ROA of -172.47%. This negative figure in 2021 indicates that Valaris Ltd's assets were not generating profits during that period.
The sharp rise in ROA from 2022 to 2023 suggests that the company has become more efficient in utilizing its assets to generate profits. A high ROA indicates that the company is earning more from its assets relative to its total assets. However, it is important to consider the underlying reasons for these fluctuations in ROA and assess whether they are sustainable in the long term.
Overall, the positive trend in Valaris Ltd's ROA in recent years signifies an improvement in asset efficiency and profitability, which could be a promising sign for investors and stakeholders.
Peer comparison
Dec 31, 2023