Valaris Ltd (VAL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,078,700 | 1,111,500 | 1,148,900 | 1,120,900 | 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 | 1,109,600 | 1,172,900 | 1,064,800 | 1,066,100 | 1,105,600 |
| 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 |
| Current ratio | 1.59 | 1.61 | 1.62 | 1.47 | 1.71 | 2.39 | 2.20 | 2.36 | 2.67 | 2.59 | 2.34 | 2.24 | 2.86 | 2.88 | 3.07 | 2.37 | 2.75 | 0.14 | 0.35 | 1.25 |
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 fluctuated over the past few years. It decreased sharply from 1.25 in March 2020 to 0.35 in June 2020, indicating potential liquidity concerns. However, the company managed to improve its liquidity position significantly by achieving a ratio of 3.07 in June 2021, showing strong short-term solvency. Subsequently, the current ratio remained relatively stable, ranging between 2.20 and 2.88 until December 2023.
There was a notable decrease in the current ratio to 1.47 in March 2024, followed by a slight increase to 1.62 in June 2024. This suggests a potential decrease in the company's ability to meet its short-term obligations with current assets.
Overall, it is essential for Valaris Ltd to carefully monitor and manage its current assets and liabilities to ensure it maintains a healthy current ratio and sufficient liquidity levels to meet its short-term obligations.
Peer comparison
Dec 31, 2024