Valaris Ltd (VAL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | 10.08 | 60.43 | 36.16 | 7.20 | |
| DOH | days | — | 36.22 | 6.04 | 10.10 | 50.71 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The Days of Inventory on Hand (DOH) ratio measures the average number of days a company holds its inventory before selling it. In the case of Valaris Ltd, the trend of the DOH ratio over the past few years is as follows:
- As of December 31, 2020, Valaris had 50.71 days of inventory on hand, indicating that the company held its inventory for about 50 days before selling it.
- By December 31, 2021, the DOH ratio had decreased significantly to 10.10 days, suggesting that Valaris managed its inventory more efficiently and reduced the time it held inventory before selling.
- The trend continued to improve by December 31, 2022, with the DOH ratio further declining to 6.04 days, indicating even more efficient inventory management practices.
- However, by December 31, 2023, there was a significant increase in the DOH ratio to 36.22 days, which may suggest potential challenges in managing inventory effectively during that period.
- Unfortunately, the data for December 31, 2024, is not available, indicated by "— days," making it challenging to assess the inventory management performance for that year.
Overall, the analysis of Valaris Ltd's DOH ratio shows fluctuations in inventory management efficiency over the years, with improvements in some periods and challenges in others. It is important for the company to closely monitor its inventory levels to optimize working capital and operational efficiency.
Peer comparison
Dec 31, 2024