Valaris Ltd (VAL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,419,800 | 4,322,200 | 2,860,300 | 2,609,200 | 12,873,200 |
| Total stockholders’ equity | US$ in thousands | 2,238,500 | 1,987,600 | 1,297,900 | 1,060,800 | 4,374,600 |
| Financial leverage ratio | 1.97 | 2.17 | 2.20 | 2.46 | 2.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,419,800K ÷ $2,238,500K
= 1.97
The financial leverage ratio for Valaris Ltd has shown a decreasing trend over the years from 2020 to 2024. This ratio was at 2.94 in 2020 and has gradually declined to 1.97 in 2024. A decreasing trend in the financial leverage ratio indicates that the company is relying less on debt to finance its operations and investments compared to its equity. This reduction in leverage could potentially signify a strengthening of the company's financial position and reduced financial risk. Valaris Ltd's decreasing financial leverage ratio suggests that the company is becoming less dependent on debt for its capital structure, which may improve its overall financial health and stability.
Peer comparison
Dec 31, 2024