Valaris Ltd (VAL)
Debt-to-equity 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,079,300 | 1,079,400 | 681,900 | 542,800 | 542,400 | 541,800 | 545,700 | 545,500 | 545,300 | 545,100 | 544,800 | 0 | 0 | 0 | 4,092,200 | 6,148,600 | 5,923,500 | 6,042,300 | 6,020,100 | 5,018,500 |
| Total stockholders’ equity | US$ in thousands | 1,987,600 | 1,183,900 | 1,254,100 | 1,342,100 | 1,289,900 | 1,214,400 | 1,137,700 | 1,022,600 | 1,074,700 | 1,036,600 | 1,089,500 | 3,463,100 | 4,374,600 | 4,518,700 | 5,190,400 | 6,298,300 | 9,310,900 | 9,531,400 | 9,720,600 | 7,900,500 |
| Debt-to-equity ratio | 0.54 | 0.91 | 0.54 | 0.40 | 0.42 | 0.45 | 0.48 | 0.53 | 0.51 | 0.53 | 0.50 | 0.00 | 0.00 | 0.00 | 0.79 | 0.98 | 0.64 | 0.63 | 0.62 | 0.64 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,079,300K ÷ $1,987,600K
= 0.54
Valaris Ltd's debt-to-equity ratio has fluctuated over the five quarters presented. In Q4 2022, the company had a relatively low debt-to-equity ratio of 0.42, indicating a stronger equity position compared to debt. This ratio increased to 0.40 in Q1 2023, suggesting a further strengthening of the company's equity relative to its debt.
However, there was a significant jump in the debt-to-equity ratio in Q2 2023, reaching 0.54. This increase may indicate a higher level of debt compared to equity, which could potentially raise concerns about the company's leverage and financial risk.
The ratio remained at 0.54 in Q4 2023, indicating that the company's debt level continued to outweigh its equity in the latter half of the year. Overall, the fluctuation in Valaris Ltd's debt-to-equity ratio suggests varying levels of financial leverage and capital structure management over the quarters analyzed.
Peer comparison
Dec 31, 2023