Forensic Analysis · Oilfield Services · as of Nov 9, 2026
Valaris Ltd (VAL)
A forensic read on Valaris Ltd built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
4.3
Distress distance
3
Forensic signals
36.3%
ROE
0.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Valaris Ltd earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 4.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.53×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.53× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
+21.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +21.1% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by PP&E up +8% against revenue 0%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 13% of net operating assets, against an accruals ratio of 21.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
11.6%
FY2025
Return on invested capital.Return on invested capital is 11.6% in the latest fiscal year and rising across FY2023–FY2025 from 1.6%. After-tax operating profit was $48M in FY2023 and $429M in FY2025, with operating income at 3.0% of revenue in FY2023, 14.9% in FY2024 and 20.1% in FY2025. The capital base behind it grew +25% across FY2023–FY2025, from $3.0B to $3.7B, and the return did not fall doing it, so the dollars added over that window earned at least the 1.6% the older base was already earning.
Key fundamentals
Latest Revenue$2.37B
Revenue Growth YoY+0.3%
Revenue CAGR (2yr)+15.2%
Net Margin41.5%
Free Cash Flow$202.7M
Return on Equity36.3%
Debt / Equity0.34x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Valaris Ltd's actual 10-K/10-Q/8-K filings?