ChampionX Corporation (CHX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.03 | 6.33 | 5.26 | 3.40 | 5.14 | |
| DSO | days | 51.91 | 57.64 | 69.37 | 107.49 | 70.94 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.03
= 51.91
To analyze ChampionX Corp.'s Days Sales Outstanding (DSO) over the past five years, we can observe a decreasing trend in DSO from 2019 to 2023. In 2019, the company had a DSO of 70.94 days, which decreased to 51.91 days by the end of 2023.
A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient credit and collection management.
The decreasing trend in DSO could suggest that ChampionX Corp. has been tightening its credit policies, improving its collections process, or experiencing a shift in sales towards customers with shorter payment terms. It may also indicate stronger customer relationships or better credit risk assessment practices.
Overall, the declining trend in DSO for ChampionX Corp. over the past five years reflects positively on the company's ability to efficiently convert credit sales into cash, potentially improving its overall liquidity and financial performance.
Peer comparison
Dec 31, 2023