Valaris Ltd (VAL)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Debt-to-assets ratio	0.25	0.19	0.00	0.35	0.36
Debt-to-capital ratio	0.35	0.30	0.00	0.39	0.38
Debt-to-equity ratio	0.54	0.42	0.00	0.64	0.62
Financial leverage ratio	2.17	2.22	2.94	1.82	1.73

Valaris Ltd's solvency ratios over the past three years indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has increased from 0.19 in 2022 to 0.25 in 2023, suggesting that the company's proportion of debt relative to its total assets has risen. This may indicate a higher level of financial risk.

Similarly, the debt-to-capital ratio has also increased from 0.30 in 2022 to 0.35 in 2023. This ratio reflects the percentage of a company's capital that is provided by debt, and the rising trend suggests an increased reliance on debt financing.

The debt-to-equity ratio has shown fluctuation over the years, reaching 0.54 in 2023. This ratio indicates the extent to which a company is financed by debt relative to its equity, and the higher ratio in 2023 may suggest a higher financial risk and leverage.

The financial leverage ratio has decreased slightly from 2.22 in 2022 to 2.17 in 2023, but it remains at a relatively high level. This ratio signifies the proportion of assets that are financed by debt, and a high ratio indicates a higher level of financial risk.

Overall, Valaris Ltd's solvency ratios show a mixed picture with increasing debt levels relative to assets and capital, which may raise concerns about the company's long-term financial health and ability to manage its debt obligations effectively.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest coverage	0.67	0.78	-16.60	0.84	-0.95

Based on the data provided, it appears that Valaris Ltd did not report an interest coverage ratio for the years ending December 31, 2023 and December 31, 2022. However, for the year ending December 31, 2021, the interest coverage ratio was calculated as -111.92, indicating that the company's operating income was insufficient to cover its interest expenses by a significant margin. This negative interest coverage ratio suggests that Valaris Ltd may have been facing financial difficulties during that period, as its earnings were insufficient to meet its interest obligations. It is important for stakeholders to monitor the company's interest coverage ratio closely in future periods to assess its ability to meet its debt obligations.