Valaris Ltd (VAL)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.71 | 2.39 | 2.20 | 2.36 | 2.67 | 2.59 | 2.34 | 2.24 | 2.86 | 2.88 | 3.07 | 2.41 | 2.75 | 2.74 | 0.35 | 1.25 | 1.28 | 1.38 | 1.17 | 2.34 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,272,200K ÷ $744,300K
= 1.71
The current ratio of Valaris Ltd has experienced a decline over the five quarters analyzed. Starting at 2.67 in Q4 2022, the ratio has steadily decreased to 1.71 in Q4 2023. This downward trend indicates that the company's current assets may be decreasing relative to its current liabilities, potentially suggesting a weakening liquidity position. While a current ratio above 1 is typically seen as favorable, indicating that the company can cover its short-term liabilities with its current assets, the consistent decrease in the ratio warrants further investigation into the company's ability to meet its short-term obligations. It is important for stakeholders to closely monitor this trend and assess the company's liquidity management strategies.
Peer comparison
Dec 31, 2023