Valaris Ltd (VAL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,784,200 | 1,602,500 | 1,427,200 | 2,053,200 | 1,705,400 |
| Receivables | US$ in thousands | 459,300 | 449,100 | 449,200 | 520,700 | 344,700 |
| Receivables turnover | 3.88 | 3.57 | 3.18 | 3.94 | 4.95 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,784,200K ÷ $459,300K
= 3.88
The trend in Valaris Ltd's receivables turnover over the past three years indicates an improvement in the company's efficiency in collecting its accounts receivable. The receivables turnover ratio has increased from 2.77 in 2021 to 3.88 in 2023. This suggests that Valaris Ltd is collecting its receivables more quickly, which is a positive sign of effective management of its accounts receivable. A higher receivables turnover ratio signifies that the company is able to generate sales and collect payments from its customers in a shorter period, leading to improved cash flow and liquidity. Overall, the increasing trend in receivables turnover reflects positively on Valaris Ltd's operational and financial efficiency.
Peer comparison
Dec 31, 2023