Valaris Ltd (VAL)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,719,800 | 1,460,600 | 1,057,600 | 705,000 | 340,800 | 258,200 | 272,000 | 229,600 | 1,091,200 | 1,323,300 | 1,463,200 | 2,462,900 | 4,590,100 | 4,778,500 | 4,874,300 | 4,086,900 | 1,215,400 | 881,300 | 739,700 | 644,900 |
| Payables | US$ in thousands | 400,100 | 376,400 | 364,200 | 324,100 | 256,500 | 256,600 | 287,000 | 311,200 | 225,800 | 203,000 | 183,900 | 176,800 | 176,400 | 180,700 | 151,900 | 258,400 | 288,200 | 326,400 | 335,200 | 214,200 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,719,800K ÷ $400,100K
= 4.30
The payables turnover for Valaris Ltd has been relatively consistent over the past five quarters, ranging from 3.86 to 5.39. The payables turnover ratio indicates how efficiently a company is managing its payable obligations. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could indicate strong liquidity or negotiation power with suppliers.
Valaris Ltd's payables turnover has decreased gradually from 5.39 in Q4 2022 to 3.86 in Q4 2023. This decline may imply that the company is taking longer to pay its suppliers, which could potentially strain cash flow if not managed effectively. It is essential for Valaris Ltd to monitor its payables turnover ratio closely to ensure timely payments to suppliers while maintaining a healthy cash position. Further analysis and comparison with industry peers may provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2023