Valaris Ltd (VAL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 53,500 | 56,300 | 101,300 | 95,600 | 37,200 | -24,000 | -82,500 | -57,200 | -854,800 | -1,003,800 | -1,101,300 | -2,130,200 | -4,334,500 | -4,358,500 | -4,500,300 | -3,638,500 | -668,000 | -585,000 | -390,700 | -265,900 |
| Long-term debt | US$ in thousands | 1,079,300 | 1,079,400 | 681,900 | 542,800 | 542,400 | 541,800 | 545,700 | 545,500 | 545,300 | 545,100 | 544,800 | 0 | 0 | 0 | 4,092,200 | 6,148,600 | 5,923,500 | 6,042,300 | 6,020,100 | 5,018,500 |
| 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 |
| Return on total capital | 1.74% | 2.49% | 5.23% | 5.07% | 2.03% | -1.37% | -4.90% | -3.65% | -52.77% | -63.46% | -67.39% | -61.51% | -99.08% | -96.45% | -48.48% | -29.23% | -4.38% | -3.76% | -2.48% | -2.06% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 five quarters. The return on total capital was highest in Q1 2023 at 6.90% and lowest in Q4 2023 at 1.74%. This indicates varying levels of efficiency in generating profits relative to the total capital employed by the company during these periods. The declining trend from Q1 2023 to Q4 2023 suggests that the company may have experienced challenges in maximizing returns on its total capital investments. Further analysis of the company's financial performance and operational strategies may be warranted to understand the factors influencing these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023