Valaris Ltd (VAL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 455,000 | 369,100 | 306,600 | 177,100 | 126,300 | 117,700 | 173,800 | 304,500 | 270,200 | 227,200 | 135,800 | -3,566,400 | -4,413,900 | -4,595,000 | -5,203,200 | -2,636,300 | -4,801,800 | -4,656,600 | -4,139,300 | -2,588,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,244,300 | 2,114,900 | 2,176,800 | 2,020,900 | 1,987,600 | 1,200,000 | 1,266,100 | 1,352,000 | 1,297,900 | 1,214,400 | 1,140,400 | 1,022,600 | 1,060,800 | 1,036,600 | 1,089,500 | 3,463,100 | 4,374,600 | 4,518,700 | 5,190,400 | 6,298,300 |
| Return on total capital | 20.27% | 17.45% | 14.08% | 8.76% | 6.35% | 9.81% | 13.73% | 22.52% | 20.82% | 18.71% | 11.91% | -348.76% | -416.09% | -443.28% | -477.58% | -76.13% | -109.77% | -103.05% | -79.75% | -41.09% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $455,000K ÷ ($—K + $2,244,300K)
= 20.27%
Valaris Ltd's return on total capital experienced significant fluctuations over the analyzed periods. The ratio was consistently negative from March 31, 2020, to June 30, 2022, indicating that the company was not generating sufficient returns to cover its capital costs during these times. However, starting from June 30, 2022, the return on total capital turned positive at 11.91% and continued to improve steadily, reaching 20.27% by December 31, 2024.
This positive trend suggests that Valaris Ltd has been able to enhance its operational efficiency and profitability, resulting in better returns on the capital employed in the business. Investors and stakeholders may view this improving trend positively, as it indicates the company's ability to generate higher returns on the investments made in its operations. Monitoring this metric over time will be vital to track the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024