Valaris Ltd (VAL)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,784,200 | 1,734,000 | 1,716,100 | 1,714,200 | 1,602,500 | 1,474,400 | 1,363,900 | 1,153,400 | 1,142,100 | 1,133,100 | 1,091,700 | 1,277,700 | 1,427,200 | 1,642,800 | 1,908,800 | 2,103,900 | 2,053,200 | 1,940,100 | 1,819,700 | 1,694,300 |
| Total current assets | US$ in thousands | 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 | 1,125,000 | 1,172,900 | 1,064,800 | 1,066,100 | 1,105,600 | 1,064,400 | 1,184,000 | 2,222,500 | 1,211,900 |
| Total current liabilities | US$ in thousands | 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 | 388,000 | 3,068,100 | 885,200 | 830,700 | 859,600 | 1,898,800 | 516,900 |
| Working capital turnover | 3.38 | 1.72 | 2.18 | 2.13 | 1.90 | 1.79 | 1.86 | 1.77 | 1.46 | 1.42 | 1.33 | 1.94 | 1.91 | 2.43 | — | 9.55 | 8.79 | 5.98 | 5.62 | 2.44 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,784,200K ÷ ($1,272,200K – $744,300K)
= 3.38
Valaris Ltd's working capital turnover has shown fluctuations over the past five quarters. In Q4 2023, the working capital turnover ratio increased to 3.38, indicating that the company generated $3.38 in net sales revenue for every dollar of working capital invested. This is a significant improvement compared to the previous quarter, Q3 2023, where the ratio was 1.72.
The Q4 2023 figure suggests that Valaris Ltd was able to efficiently utilize its working capital to drive sales growth. However, it is important to note that the working capital turnover was lower in Q2 2023 and Q1 2023 at 2.18 and 2.13 respectively, but still higher than Q4 2022 when it was 1.90.
Overall, the trend in the working capital turnover ratio for Valaris Ltd indicates an improvement in the efficiency of working capital management and the utilization of resources to generate sales revenue. A higher working capital turnover ratio is generally seen as favorable as it reflects efficient operations and better utilization of assets to generate revenue.
Peer comparison
Dec 31, 2023