Valaris Ltd (VAL)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,079,300 | 542,400 | 0 | 5,923,500 | 5,010,400 |
| Total stockholders’ equity | US$ in thousands | 1,987,600 | 1,289,900 | 4,374,600 | 9,310,900 | 8,091,400 |
| Debt-to-equity ratio | 0.54 | 0.42 | 0.00 | 0.64 | 0.62 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,079,300K ÷ $1,987,600K
= 0.54
The debt-to-equity ratio of Valaris Ltd has shown some fluctuation over the past three years. In 2021, the ratio stood at 0.52, indicating that the company had more debt relative to equity. However, by the end of 2022, the ratio improved to 0.42, suggesting a lower level of debt compared to equity.
By the end of 2023, the debt-to-equity ratio had increased to 0.54, signaling that Valaris Ltd had taken on more debt in relation to equity compared to the previous year. Overall, the trend in the debt-to-equity ratio reflects some variability in the company's capital structure and leverage position over the analyzed period. It is important to further assess the reasons behind these changes to understand the implications for Valaris Ltd's financial health and risk management.
Peer comparison
Dec 31, 2023