ChampionX Corporation (CHX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.79 | 8.44 | 8.38 | 7.91 | 7.03 | 7.31 | 7.44 | 7.21 | 6.33 | 5.96 | 5.60 | 4.95 | 5.26 | 5.01 | 4.81 | 4.40 | 3.40 | 2.79 | 2.10 | 4.99 | |
| DSO | days | 46.88 | 43.23 | 43.56 | 46.14 | 51.91 | 49.95 | 49.09 | 50.63 | 57.64 | 61.28 | 65.22 | 73.79 | 69.37 | 72.87 | 75.81 | 82.97 | 107.49 | 130.71 | 173.97 | 73.16 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.79
= 46.88
ChampionX Corporation's Days Sales Outstanding (DSO) measures how long, on average, it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates faster cash collection and efficient accounts receivable management.
Analyzing the quarterly DSO data of ChampionX Corporation:
- The DSO was 73.16 days as of March 31, 2020, then increased to 173.97 days by June 30, 2020, which suggests a significant delay in collecting payments.
- There was a notable improvement as the DSO decreased to 107.49 days by December 31, 2020, before fluctuating around 70-80 days during the subsequent quarters.
- From December 31, 2021, to December 31, 2024, there has been a consistent decline in DSO, reaching 46.88 days by the end of December 31, 2024. This downward trend indicates more effective accounts receivable management and a quicker collection of sales proceeds.
Overall, ChampionX Corporation has shown a positive trend in reducing its DSO over the analyzed period, which could imply enhanced efficiency in collecting receivables and better cash flow management. It is essential for the company to sustain this trend to ensure continued financial health and liquidity.
Peer comparison
Dec 31, 2024