Valaris Ltd (VAL)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 865,400 | 59,400 | 120,800 | 261,800 | 176,500 | 180,600 | 51,800 | -66,000 | -937,400 | -1,041,600 | -1,658,000 | -2,759,200 | -4,855,500 | -5,000,600 | -4,526,800 | -3,013,900 | -198,000 | -185,600 | -133,500 | -690,000 |
| Total stockholders’ equity | US$ in thousands | 1,987,600 | 1,183,900 | 1,254,100 | 1,342,100 | 1,289,900 | 1,214,400 | 1,137,700 | 1,022,600 | 1,074,700 | 1,036,600 | 1,089,500 | 3,463,100 | 4,374,600 | 4,518,700 | 5,190,400 | 6,298,300 | 9,310,900 | 9,531,400 | 9,720,600 | 7,900,500 |
| ROE | 43.54% | 5.02% | 9.63% | 19.51% | 13.68% | 14.87% | 4.55% | -6.45% | -87.22% | -100.48% | -152.18% | -79.67% | -110.99% | -110.66% | -87.21% | -47.85% | -2.13% | -1.95% | -1.37% | -8.73% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $865,400K ÷ $1,987,600K
= 43.54%
Valaris Ltd's return on equity (ROE) has shown variability over the past five quarters. In Q4 2023, the ROE significantly increased to 43.54%, indicating that the company generated a substantial return on its shareholders' equity in that period. This is a positive sign for investors as it suggests efficient management of the company's assets to generate higher profits relative to its equity.
In the preceding quarters, the ROE ranged from 5.02% in Q3 2023 to 19.51% in Q1 2023. The lower ROE in Q3 2023 could potentially be a concern for investors as it indicates lower profitability relative to equity. However, the variability in ROE over these quarters may suggest fluctuations in the company's financial performance, which could be due to various factors such as economic conditions, industry trends, or company-specific issues.
Overall, while the ROE for Valaris Ltd has shown fluctuations, the recent significant increase in Q4 2023 indicates a strong performance in that period. Investors and stakeholders may closely monitor future ROE trends to assess the company's ability to generate returns on its equity effectively.
Peer comparison
Dec 31, 2023