Valaris Ltd (VAL)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Valaris Ltd:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates a more efficient inventory management.
- Valaris Ltd's inventory turnover has been fluctuating over the years, ranging from as low as 6.31 to as high as 98.30.
- The significant fluctuations in inventory turnover may indicate changes in the company's sales patterns or inventory management practices.

2. Receivables Turnover:
- No data is available for the receivables turnover ratio, which measures how quickly the company collects its accounts receivable.
- The absence of receivables turnover data may make it challenging to assess the effectiveness of Valaris Ltd in collecting its outstanding receivables.

3. Payables Turnover:
- Similar to receivables turnover, no data is available for payables turnover, which measures how quickly the company pays its suppliers.
- Without payables turnover data, it is difficult to evaluate how efficiently Valaris Ltd is managing its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales.
- Valaris Ltd's working capital turnover has shown variations over time, with values ranging from 1.44 to 5.92.
- An increasing working capital turnover ratio may indicate improved efficiency in utilizing working capital to generate revenue.

In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Valaris Ltd's operational efficiency, the absence of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity ratios. Further information and analysis would be necessary to fully assess Valaris Ltd's effectiveness in managing its working capital and inventory.

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Average number of days

Based on the provided data, Valaris Ltd's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The trend in Valaris Ltd's DOH shows a gradual decrease from 57.84 days on March 31, 2020, to 6.04 days on December 31, 2022.
- A sudden increase is observed on March 31, 2023, and the ratio remains relatively high at 36.22 days on December 31, 2023.
- As of the latest data point on December 31, 2023, Valaris Ltd is holding inventory for approximately 36.22 days, which may indicate that the company has excess inventory or potential issues with inventory management.

2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on Days of Sales Outstanding (DSO) for Valaris Ltd, which suggests that the company may not have robust credit sales or accounts receivable to analyze in this context.

3. Number of Days of Payables:
- The data does not include any information on the Number of Days of Payables, indicating that details on how long Valaris Ltd takes to pay its outstanding invoices or obligations to suppliers are missing from the dataset.

In conclusion, while Valaris Ltd's inventory management has shown fluctuations over the years, the lack of information for DSO and payables makes a comprehensive analysis of the company's overall activity ratios challenging. Monitoring inventory levels and improving inventory turnover could help optimize working capital management for Valaris Ltd in the future.

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Long-term

The fixed asset turnover ratio of Valaris Ltd has shown a consistent improvement over the years, starting at 0.17 in March 2020 and increasing steadily to reach 1.69 by March 2023, indicating that the company is becoming more efficient in generating revenue from its fixed assets. However, there was a slight decline to 1.60 by June 2023, followed by a decrease to 1.49 by September 2023 before reaching 1.64 by December 2023.

On the other hand, the total asset turnover ratio of Valaris Ltd has also displayed a positive trend, climbing from 0.15 in March 2020 to 0.58 by March 2023. Subsequently, there was a slight reduction to 0.56 in June 2023 and a further decline to 0.50 by September 2023. The ratio recovered to 0.53 by December 2024.

Overall, the long-term activity ratios of Valaris Ltd demonstrate the company's improving efficiency in generating revenue from both fixed assets and total assets, although there have been some fluctuations in the ratios in certain periods.