Valaris Ltd (VAL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 620,500 | 724,100 | 325,800 | 97,200 | 275,100 |
| Short-term investments | US$ in thousands | — | — | 120,000 | 0 | 329,000 |
| Receivables | US$ in thousands | 459,300 | 449,100 | 449,200 | 520,700 | 344,700 |
| Total current liabilities | US$ in thousands | 744,300 | 504,400 | 426,800 | 830,700 | 528,500 |
| Quick ratio | 1.45 | 2.33 | 2.10 | 0.74 | 1.80 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($620,500K
+ $—K
+ $459,300K)
÷ $744,300K
= 1.45
The quick ratio of Valaris Ltd has shown a declining trend over the past three years, from 2.77 in 2021 to 1.69 in 2023. This indicates a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1.0 is generally considered healthy, as it suggests the company has enough liquid assets to cover its short-term liabilities. However, the decreasing trend in Valaris Ltd's quick ratio may raise concerns about its liquidity position and ability to cover its short-term obligations in the future. Further analysis of the company's cash and current asset composition would be beneficial to fully assess its liquidity position.
Peer comparison
Dec 31, 2023