Valaris Ltd (VAL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,078,700 | 1,272,200 | 1,346,200 | 1,206,600 | 1,172,900 |
| Total current liabilities | US$ in thousands | 679,500 | 744,300 | 504,400 | 422,000 | 426,800 |
| Current ratio | 1.59 | 1.71 | 2.67 | 2.86 | 2.75 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,078,700K ÷ $679,500K
= 1.59
The current ratio of Valaris Ltd has shown a generally stable trend in recent years, increasing from 2.75 in December 2020 to 2.86 in December 2021, before slightly declining to 2.67 in December 2022. However, there was a significant drop in the current ratio to 1.71 in December 2023 and a further decrease to 1.59 in December 2024.
A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position. However, the declining trend observed in the later years may raise concerns about the company's ability to meet short-term obligations with its current assets.
It is essential for Valaris Ltd to closely monitor its liquidity position and take appropriate measures to ensure it maintains a healthy balance between its current assets and liabilities to support its ongoing operations and financial stability.
Peer comparison
Dec 31, 2024