Valaris Ltd (VAL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 53,500 | 37,200 | -4,824,300 | 358,700 | -267,400 |
| Long-term debt | US$ in thousands | 1,079,300 | 542,400 | 0 | 5,923,500 | 5,010,400 |
| Total stockholders’ equity | US$ in thousands | 1,987,600 | 1,289,900 | 4,374,600 | 9,310,900 | 8,091,400 |
| Return on total capital | 1.74% | 2.03% | -110.28% | 2.35% | -2.04% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $53,500K ÷ ($1,079,300K + $1,987,600K)
= 1.74%
Valaris Ltd's return on total capital has exhibited fluctuations over the past three years. In 2023, the return on total capital decreased to 1.74% from 3.91% in 2022, reflecting a decline in the company's ability to generate profits relative to its total capital employed. However, this figure remained positive in 2023, indicating some level of profitability. In contrast, in 2021, the return on total capital was negative at -9.07%, suggesting that the company experienced losses relative to its total capital during that period. This negative return highlights potential inefficiencies or challenges faced by Valaris Ltd in effectively utilizing its capital to generate returns.
Peer comparison
Dec 31, 2023