Valaris Ltd (VAL)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,883,000 | 1,863,300 | 1,786,200 | 1,715,800 | 1,644,700 | 1,592,400 | 1,535,000 | 1,521,100 | 1,474,400 | 1,407,800 | 1,347,200 | 1,271,500 | 1,293,400 | 1,421,700 | 1,552,600 | 1,746,400 | 1,846,700 | 1,884,400 | 1,951,300 | 1,949,400 |
| Inventory | US$ in thousands | — | 57,900 | 0 | 0 | 163,200 | 16,200 | 18,000 | 21,500 | 24,400 | 154,000 | 23,800 | 126,000 | 35,900 | 125,000 | 146,800 | 269,700 | 279,400 | 293,100 | 303,000 | 308,900 |
| Inventory turnover | — | 32.18 | — | — | 10.08 | 98.30 | 85.28 | 70.75 | 60.43 | 9.14 | 56.61 | 10.09 | 36.03 | 11.37 | 10.58 | 6.48 | 6.61 | 6.43 | 6.44 | 6.31 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,883,000K ÷ $—K
= —
Based on the provided data, Valaris Ltd's inventory turnover has shown varying trends over the financial periods. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times the inventory is sold and replaced during a specific period.
From March 31, 2020, to September 30, 2021, the inventory turnover ratio remained relatively stable, ranging from 6.31 to 11.37. However, a significant increase was observed in the following quarters, with ratios reaching as high as 98.30 on September 30, 2023. This sharp increase suggests that Valaris Ltd improved its inventory management practices during this period, possibly by reducing excess inventory levels or optimizing supply chain processes.
The ratio dropped to 10.08 on December 31, 2023, indicating a potential slowdown in inventory turnover efficiency. The trend continued with further declines in the subsequent quarters, reaching 32.18 on September 30, 2024.
The sudden spike to 70.75 on March 31, 2023, and subsequent fluctuations may suggest changes in the company's sales patterns, production processes, or inventory management strategies. It would be advisable for Valaris Ltd to closely monitor and analyze its inventory turnover ratios to ensure optimal inventory management practices are implemented to maintain efficient operations and profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024