Valaris Ltd (VAL)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,362,600 | 2,262,000 | 2,074,000 | 1,879,100 | 1,784,200 | 1,734,000 | 1,716,100 | 1,714,200 | 1,602,500 | 1,474,400 | 1,363,900 | 1,243,700 | 1,232,400 | 1,223,400 | 1,182,000 | 1,277,700 | 1,427,200 | 1,642,800 | 1,908,800 | 2,103,900 |
| Total current assets | US$ in thousands | 1,078,700 | 1,111,500 | 1,148,900 | 1,120,900 | 1,272,200 | 1,728,400 | 1,447,400 | 1,395,500 | 1,346,200 | 1,342,600 | 1,280,900 | 1,173,200 | 1,206,600 | 1,227,500 | 1,217,700 | 1,109,600 | 1,172,900 | 1,064,800 | 1,066,100 | 1,105,600 |
| Total current liabilities | US$ in thousands | 679,500 | 692,300 | 707,600 | 760,700 | 744,300 | 723,000 | 658,900 | 591,800 | 504,400 | 519,100 | 547,100 | 523,300 | 422,000 | 426,800 | 396,600 | 467,400 | 426,800 | 7,701,700 | 3,068,100 | 885,200 |
| Working capital turnover | 5.92 | 5.40 | 4.70 | 5.22 | 3.38 | 1.72 | 2.18 | 2.13 | 1.90 | 1.79 | 1.86 | 1.91 | 1.57 | 1.53 | 1.44 | 1.99 | 1.91 | — | — | 9.55 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,362,600K ÷ ($1,078,700K – $679,500K)
= 5.92
The working capital turnover ratio, which measures how efficiently a company utilizes its working capital to generate sales, for Valaris Ltd has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio was relatively high at 9.55 on March 31, 2020, indicating that the company was able to efficiently convert its working capital into revenue. However, the ratio was not available for June 30 and September 30, 2020.
Subsequently, there was a significant drop in the ratio to 1.91 by December 31, 2020, which might suggest a less efficient utilization of working capital. The ratio improved slightly to 1.99 by March 31, 2021 and then decreased to 1.44 by June 30, 2021, reflecting potential challenges in managing working capital efficiently during that period.
From September 30, 2021, to December 31, 2024, the working capital turnover ratio fluctuated within a range of 1.53 to 5.92. There was an increasing trend in the ratio from March 31, 2023, to December 31, 2024, indicating a better efficiency in converting working capital into sales during those quarters.
Overall, the working capital turnover ratio for Valaris Ltd has shown variability over the years, suggesting fluctuations in the company's ability to efficiently utilize its working capital to generate revenue. Further analysis may be required to understand the specific factors influencing these fluctuations in the ratio.
Peer comparison
Dec 31, 2024