Valaris Ltd (VAL)
Working capital 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 |
| Total current assets | US$ in thousands | 1,272,200 | 1,346,200 | 1,172,900 | 1,064,400 | 1,309,700 |
| Total current liabilities | US$ in thousands | 744,300 | 504,400 | 426,800 | 830,700 | 528,500 |
| Working capital turnover | 3.38 | 1.90 | 1.91 | 8.79 | 2.18 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,784,200K ÷ ($1,272,200K – $744,300K)
= 3.38
The working capital turnover ratio for Valaris Ltd has shown a consistent improvement over the past three years, increasing from 1.57 in 2021 to 1.90 in 2022, and further to 3.38 in 2023. This upward trend indicates that the company is more efficient in utilizing its working capital to generate revenue. A higher working capital turnover ratio suggests that Valaris is generating more sales revenue per dollar of working capital invested, which is a positive indicator of operational efficiency and liquidity management. The significant improvement in this ratio year over year highlights the company's ability to effectively manage its short-term assets and liabilities to support its core operations.
Peer comparison
Dec 31, 2023