ChampionX Corporation (CHX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,445,281 | 2,506,464 | 2,545,623 | 2,576,591 | 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 |
| Inventory | US$ in thousands | 496,831 | 546,817 | 538,999 | 543,224 | 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 |
| Inventory turnover | 4.92 | 4.58 | 4.72 | 4.74 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,445,281K ÷ $496,831K
= 4.92
The inventory turnover ratio reflects how efficiently a company manages its inventory by measuring the number of times inventory is sold and replaced during a specific period.
Looking at the inventory turnover data for ChampionX Corporation from March 31, 2020, to December 31, 2024, we can observe fluctuations in the ratio:
- The ratio stood at 3.56 on March 31, 2020, indicating that the company turned over its inventory 3.56 times during that period.
- The ratio then decreased to 1.53 on June 30, 2020, suggesting a decline in inventory turnover efficiency.
- From September 30, 2020, to June 30, 2022, there was a gradual improvement in the inventory turnover ratio, reaching a peak of 5.36 on December 31, 2022, showcasing better management of inventory levels.
- However, the ratio slightly decreased in the subsequent quarters but remained relatively stable around 4 times from March 31, 2023, to December 31, 2024.
Overall, ChampionX Corporation has shown fluctuations in its inventory turnover ratio over the analyzed period but generally maintained an efficient inventory management process, with the ratio consistently above 4, indicating that the company efficiently sells and replenishes its inventory. It is essential for the company to continue monitoring this ratio to ensure optimal inventory management practices are in place.
Peer comparison
Dec 31, 2024
Dec 31, 2024