Valaris Ltd (VAL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,987,600 | 1,289,900 | 4,374,600 | 9,310,900 | 8,091,400 |
| ROE | 43.54% | 13.68% | -110.99% | -2.13% | -7.91% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $865,400K ÷ $1,987,600K
= 43.54%
Valaris Ltd's return on equity (ROE) has shown significant variation over the past three years. In 2023, the company's ROE stood at a healthy 43.54%, reflecting a strong profitability relative to its equity. This was a substantial improvement compared to 2022, where the ROE was 13.68%. Notably, the company experienced a significant negative ROE of -425.29% in 2021, indicating that the company incurred a net loss greater than its equity during that period.
The fluctuation in ROE indicates changes in the company's ability to generate profits from shareholders' equity. The sharp improvement in ROE from 2022 to 2023 suggests that Valaris Ltd has made strides in enhancing its profitability and efficiency in utilizing shareholder funds. However, the negative ROE in 2021 raises concerns about the company's financial stability and operational performance during that period.
Overall, the trend in Valaris Ltd's ROE underscores the volatile nature of its financial performance and emphasizes the importance of monitoring the company's profitability and efficiency in managing its equity resources.
Peer comparison
Dec 31, 2023