ChampionX Corporation (CHX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,758,280 | 3,805,950 | 3,074,990 | 1,900,000 | 1,131,250 |
| Property, plant and equipment | US$ in thousands | 731,998 | 717,375 | 768,765 | 854,536 | 248,181 |
| Fixed asset turnover | 5.13 | 5.31 | 4.00 | 2.22 | 4.56 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,758,280K ÷ $731,998K
= 5.13
The fixed asset turnover ratio for ChampionX Corp. has shown fluctuations over the past five years. In 2023, the ratio decreased to 4.86 from 5.18 in 2022, indicating that the company generated $4.86 in sales revenue for every dollar invested in fixed assets. This decrease could be attributed to changes in the company's sales or fixed asset base.
Compared to 2021, where the ratio was 3.96, the 2023 ratio of 4.86 represents an improvement in efficiency in utilizing fixed assets to generate sales. This suggests that ChampionX Corp. has been more effective in generating sales from its fixed assets in 2023.
Furthermore, the fixed asset turnover ratios in 2020 and 2019 were 2.22 and 4.56, respectively. The significant increase from 2.22 in 2020 to 4.86 in 2023 indicates that the company has enhanced its fixed asset utilization efficiency over the years.
Overall, while there have been fluctuations in ChampionX Corp.'s fixed asset turnover ratio, the increasing trend from 2020 to 2023 suggests improvements in the company's ability to generate sales from its fixed assets.
Peer comparison
Dec 31, 2023