ChampionX Corporation (CHX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,633,983 | 3,665,501 | 3,698,751 | 3,732,079 | 3,758,285 | 3,800,585 | 3,882,362 | 3,888,334 | 3,805,947 | 3,642,237 | 3,439,462 | 3,256,062 | 3,074,990 | 2,958,967 | 2,773,708 | 2,323,450 | 1,899,996 | 1,441,622 | 1,084,935 | 1,092,191 |
| Property, plant and equipment | US$ in thousands | 701,397 | 760,775 | 752,553 | 759,038 | 731,998 | 763,559 | 757,841 | 739,853 | 717,375 | 722,868 | 746,408 | 762,234 | 768,765 | 780,686 | 818,928 | 833,256 | 854,536 | 868,111 | 944,745 | 235,114 |
| Fixed asset turnover | 5.18 | 4.82 | 4.91 | 4.92 | 5.13 | 4.98 | 5.12 | 5.26 | 5.31 | 5.04 | 4.61 | 4.27 | 4.00 | 3.79 | 3.39 | 2.79 | 2.22 | 1.66 | 1.15 | 4.65 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,633,983K ÷ $701,397K
= 5.18
The fixed asset turnover ratio for ChampionX Corporation has exhibited a fluctuating trend over the past several quarters. The ratio started at a relatively high level of 4.65 in March 31, 2020, indicating that the company generated $4.65 in sales for every dollar invested in fixed assets. However, this ratio dropped significantly to 1.15 in June 30, 2020, reflecting a decline in efficiency in utilizing fixed assets to generate sales.
Since then, the fixed asset turnover ratio has shown some recovery, gradually increasing to 5.18 by December 31, 2024. This demonstrates an improvement in the company's ability to generate sales from its fixed assets. The peak value of 5.31 was reached on December 31, 2022.
Overall, ChampionX Corporation has shown a mixed performance in terms of fixed asset turnover, with periods of both decline and recovery. It is essential for the company to continue monitoring and improving this ratio to ensure optimal utilization of fixed assets and maximize sales generation.
Peer comparison
Dec 31, 2024