ChampionX Corporation (CHX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,445,280 | 2,618,650 | 2,907,280 | 2,331,720 | 1,490,820 |
| Inventory | US$ in thousands | 496,831 | 521,549 | 542,543 | 542,910 | 430,112 |
| Inventory turnover | 4.92 | 5.02 | 5.36 | 4.29 | 3.47 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,445,280K ÷ $496,831K
= 4.92
Based on the inventory turnover data provided for ChampionX Corporation, we observe a consistent improvement in the efficiency of managing inventory over the years. The inventory turnover ratio has shown an increasing trend from 3.47 in December 31, 2020, to 4.29 in December 31, 2021, further rising to 5.36 by December 31, 2022.
Although there was a slight decrease in inventory turnover to 5.02 by December 31, 2023, the ratio remains relatively high, indicating the company's ability to sell and replenish its inventory effectively. By December 31, 2024, the inventory turnover ratio stood at 4.92, reflecting continued strong performance in inventory management.
The increasing trend in inventory turnover suggests that ChampionX Corporation has been successful in efficiently managing its inventory levels, which can lead to reduced carrying costs, improved cash flow, and better utilization of resources. It indicates efficient sales and production operations, potentially resulting in increased profitability and operational effectiveness for the company.
Peer comparison
Dec 31, 2024