Valaris Ltd (VAL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.88 | 3.57 | 3.18 | 3.94 | 4.95 | |
| DSO | days | 93.96 | 102.29 | 114.88 | 92.57 | 73.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.88
= 93.96
Valaris Ltd's Days of Sales Outstanding (DSO) has shown a decreasing trend over the past three years. As of December 31, 2023, the DSO stands at 93.96 days compared to 102.29 days in 2022 and 131.56 days in 2021. This indicates that the company is collecting its accounts receivable more efficiently, taking fewer days to convert sales into cash. A lower DSO is generally considered favorable as it indicates a quicker turnover of accounts receivable and better liquidity. Valaris Ltd's management may have implemented better credit control measures or improved collection processes to achieve this improvement in DSO. It is important for the company to continue monitoring this metric to ensure consistent and efficient management of its accounts receivable.
Peer comparison
Dec 31, 2023