Valaris Ltd (VAL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 36.22 | 6.04 | 10.10 | 50.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 36.22 | 6.04 | 10.10 | 50.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Valaris Ltd has exhibited varying trends over the years. In 2020, the company's cash conversion cycle was 50.71 days, indicating that it took approximately 50 days to convert its investments in inventory and accounts receivable into cash. This was reduced significantly to 10.10 days in 2021, suggesting improved efficiency in managing its working capital.
By the end of 2022, Valaris had further optimized its cash conversion cycle to only 6.04 days, reflecting a faster turnaround in converting its operating resources into cash. However, in 2023, the cycle increased to 36.22 days, indicating a temporary slowdown in the conversion process.
Notably, by the end of 2024, Valaris achieved a cash conversion cycle of 0.00 days, suggesting an exceptional performance in efficiently managing its working capital. This implies that the company was able to convert its investments into cash instantaneously, showcasing strong liquidity and effective working capital management strategies.
Peer comparison
Dec 31, 2024