Valaris Ltd (VAL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 368,200 | 379,300 | 410,300 | 509,100 | 620,500 | 1,041,100 | 787,300 | 822,500 | 724,100 | 406,000 | 553,500 | 578,200 | 608,700 | 620,800 | 608,800 | 291,700 | 325,800 | 180,400 | 202,000 | 184,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 0 | 0 | 0 | 0 | 220,000 | — | — | — | 87,000 | 85,000 | — | 120,000 | 121,000 | 117,000 | — |
| 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 |
| Cash ratio | 0.54 | 0.55 | 0.58 | 0.67 | 0.83 | 1.44 | 1.19 | 1.39 | 1.44 | 1.21 | 1.01 | 1.10 | 1.44 | 1.66 | 1.75 | 0.62 | 1.04 | 0.04 | 0.10 | 0.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($368,200K
+ $—K)
÷ $679,500K
= 0.54
The cash ratio of Valaris Ltd, which is a measure of a company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown fluctuations over the reporting periods provided.
In December 2020, the cash ratio improved significantly to 1.04, indicating that the company had more than enough cash to cover its current liabilities at that point in time. Subsequently, the cash ratio continued to demonstrate strength, reaching its peak in June 2021 at 1.75.
However, from December 2021 to June 2024, the cash ratio gradually declined, suggesting a decrease in the company's ability to meet its short-term obligations solely through its cash reserves. By December 2024, the cash ratio stood at 0.54, illustrating a potential liquidity concern.
Overall, it is important for Valaris Ltd to closely monitor its cash position and manage its short-term liquidity effectively to ensure it can meet its financial obligations as they come due. The declining trend in the cash ratio should be a point of attention for the company to address any underlying issues affecting its cash reserves and liquidity position.
Peer comparison
Dec 31, 2024