ChampionX Corporation (CHX)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,618,646 | 2,660,541 | 2,837,636 | 2,913,926 | 2,907,284 | 2,820,882 | 2,619,026 | 2,467,509 | 2,331,715 | 2,254,864 | 2,136,768 | 1,834,285 | 1,490,824 | 1,125,959 | 805,033 | 735,759 | 754,147 | 785,571 | 805,275 | 809,522 |
| Inventory | US$ in thousands | 521,549 | 588,800 | 599,040 | 591,788 | 542,543 | 570,820 | 606,956 | 625,540 | 542,910 | 497,473 | 467,594 | 435,272 | 430,112 | 471,331 | 527,642 | 206,948 | 211,342 | 219,614 | 234,254 | 232,933 |
| Inventory turnover | 5.02 | 4.52 | 4.74 | 4.92 | 5.36 | 4.94 | 4.32 | 3.94 | 4.29 | 4.53 | 4.57 | 4.21 | 3.47 | 2.39 | 1.53 | 3.56 | 3.57 | 3.58 | 3.44 | 3.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,618,646K ÷ $521,549K
= 5.02
ChampionX Corp.'s inventory turnover has exhibited fluctuations over the past eight quarters. The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher turnover ratio indicates that inventory is being managed efficiently.
In the latest quarter, Q4 2023, ChampionX Corp. had an inventory turnover of 5.02, which indicates that the company sold and replaced its inventory approximately 5.02 times during that period. This represents an improvement from the previous quarter's ratio of 4.52 in Q3 2023.
The company's inventory turnover has generally been above 4 in recent quarters, indicating effective inventory management. The highest turnover ratio was recorded in Q4 2022 at 5.36, while the lowest was seen in Q1 2022 at 3.94. The fluctuations in inventory turnover may be influenced by factors such as seasonal demand, production efficiency, or changes in sales patterns.
Overall, ChampionX Corp.'s inventory turnover ratio demonstrates a consistent effort to efficiently manage its inventory levels and meet customer demand. Monitoring this ratio over time can provide insights into the company's operational effectiveness and inventory control strategies.
Peer comparison
Dec 31, 2023
Dec 31, 2023