Valaris Ltd (VAL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 620,500 | 1,041,100 | 787,300 | 822,500 | 724,100 | 406,000 | 553,500 | 578,200 | 608,700 | 620,800 | 608,800 | 291,700 | 325,800 | 180,400 | 202,000 | 184,900 | 97,200 | 129,500 | 959,100 | 298,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 220,000 | — | — | 0 | 87,000 | 85,000 | — | 120,000 | 121,000 | 117,000 | — | 0 | 0 | 135,000 | 245,000 |
| Receivables | US$ in thousands | 459,300 | 492,400 | 473,400 | 393,400 | 449,100 | 535,500 | 544,600 | 439,300 | 444,200 | 455,800 | 436,100 | 449,800 | 449,200 | 429,700 | 363,300 | 493,200 | 520,700 | 567,000 | 628,700 | 313,700 |
| 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 |
| Quick ratio | 1.45 | 2.12 | 1.91 | 2.05 | 2.33 | 2.24 | 2.01 | 1.94 | 2.50 | 2.73 | 2.85 | 1.59 | 2.10 | 1.88 | 0.22 | 0.77 | 0.74 | 0.81 | 0.91 | 1.66 |
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 downward trend over the past five quarters, decreasing from 2.62 in Q4 2022 to 1.69 in Q4 2023. This indicates a reduction in the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio was at its highest in Q3 2023 at 2.37, suggesting a temporary improvement in the company's liquidity position. However, the subsequent decline in Q4 2023 may raise concerns about the company's short-term financial health and ability to cover immediate liabilities without relying on inventory. Further analysis and monitoring of this trend are recommended to assess the company's liquidity management and financial stability.
Peer comparison
Dec 31, 2023