Valaris Ltd (VAL)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 4.30 | 3.88 | 2.90 | 2.18 | 1.33 | 1.01 | 0.95 | 0.74 | 4.83 | 6.52 | 7.96 | 13.93 | 26.02 | 26.44 | 32.09 | 15.82 | 4.22 | 2.70 | 2.21 | 3.01 | |
| Number of days of payables | days | 84.91 | 94.06 | 125.69 | 167.80 | 274.71 | 362.74 | 385.13 | 494.72 | 75.53 | 55.99 | 45.87 | 26.20 | 14.03 | 13.80 | 11.37 | 23.08 | 86.55 | 135.18 | 165.40 | 121.23 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.30
= 84.91
The number of days of payables for Valaris Ltd has shown a fluctuating trend over the past five quarters. In Q4 2023, the number of days of payables increased to 94.61 days compared to the previous quarters, indicating that the company is taking longer to pay off its creditors. This could be a sign of potential liquidity issues or a deliberate strategy to manage cash flow.
Compared to Q4 2022, where the number of days of payables was 67.69 days, the current increase in days of payables suggests a shift in the company's payment practices. The upward trend from Q1 2023 to Q4 2023 may reflect a deliberate effort to stretch out payment terms to suppliers, potentially freeing up cash for other uses in the business.
It is important to monitor this metric closely in future quarters to see if this trend continues, as a prolonged increase in days of payables could indicate financial stress or operational inefficiencies within the company. A further analysis of Valaris Ltd's financial performance and cash management strategies would provide deeper insights into the implications of the changing number of days of payables.
Peer comparison
Dec 31, 2023