Valaris Ltd (VAL)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 368,200 620,500 724,100 608,700 325,800
Short-term investments US$ in thousands 0 120,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 679,500 744,300 504,400 422,000 426,800
Quick ratio 0.54 0.83 1.44 1.44 1.04

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($368,200K + $—K + $—K) ÷ $679,500K
= 0.54

The quick ratio of Valaris Ltd experienced fluctuations over the past years, ranging from 0.54 to 1.44. In December 31, 2020, the quick ratio was 1.04, indicating that the company had just enough liquid assets to cover its current liabilities. However, the ratio improved in the following years, reaching 1.44 by December 31, 2021 and remaining at the same level by December 31, 2022. This suggests that Valaris had a healthier liquidity position during these periods.

However, the quick ratio dropped to 0.83 by December 31, 2023, signaling a decrease in the company's ability to meet its short-term obligations with its most liquid assets. Furthermore, the ratio decreased further to 0.54 by December 31, 2024, indicating a potential liquidity strain for Valaris.

Overall, fluctuations in the quick ratio of Valaris Ltd highlight varying levels of liquidity risk and the importance of closely monitoring the company's ability to fulfill its short-term liabilities with its readily available assets. Investors and stakeholders should assess the reasons behind these changes to better understand the company's financial health and ability to weather potential financial challenges.


Peer comparison

Dec 31, 2024