ChampionX Corporation (CHX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.79 | 7.03 | 6.33 | 5.26 | 3.40 | |
| DSO | days | 46.88 | 51.91 | 57.64 | 69.37 | 107.49 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.79
= 46.88
Based on the data provided, ChampionX Corporation's Days Sales Outstanding (DSO) has shown a positive trend of decreasing over the years.
As of December 31, 2020, the company had a DSO of 107.49 days. Over the next four years, there has been a consistent improvement in managing receivables, with DSO decreasing to 69.37 days by December 31, 2021, 57.64 days by December 31, 2022, 51.91 days by December 31, 2023, and further down to 46.88 days by December 31, 2024.
A decreasing trend in DSO indicates that ChampionX Corporation has been efficient in collecting its accounts receivable, which can positively impact cash flow and liquidity. This improvement could be attributed to better credit policies, effective collection processes, or possibly stronger customer relationships.
Overall, the declining trend in DSO reflects positively on the company's ability to manage its receivables effectively, potentially leading to improved working capital management and financial performance. It also suggests a more efficient utilization of resources and a healthier financial position for ChampionX Corporation.
Peer comparison
Dec 31, 2024