Valaris Ltd (VAL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,322,200 | 3,484,900 | 3,088,400 | 2,951,200 | 2,860,300 | 2,821,200 | 2,760,800 | 2,637,700 | 2,603,100 | 2,602,500 | 2,601,700 | 11,946,900 | 12,873,200 | 12,911,200 | 13,038,900 | 14,025,100 | 16,931,200 | 17,230,600 | 18,440,100 | 13,863,000 |
| 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 |
| Financial leverage ratio | 2.17 | 2.94 | 2.46 | 2.20 | 2.22 | 2.32 | 2.43 | 2.58 | 2.42 | 2.51 | 2.39 | 3.45 | 2.94 | 2.86 | 2.51 | 2.23 | 1.82 | 1.81 | 1.90 | 1.75 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,322,200K ÷ $1,987,600K
= 2.17
The financial leverage ratio of Valaris Ltd has shown variability over the past five quarters, ranging from 2.17 to 2.94. The ratio peaked in Q3 2023 at 2.94 and then decreased in Q4 2023 to 2.17. This indicates that the company has been using more debt to finance its operations in some quarters compared to others. Overall, the average financial leverage ratio for the period is 2.40, suggesting that the company relies more on debt financing to support its operations and investments, which could potentially lead to higher financial risk but also higher returns for equity investors. It is important for stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023