ChampionX Corporation (CHX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,618,650 | 2,907,280 | 2,331,720 | 1,490,820 | 754,147 |
| Payables | US$ in thousands | 451,680 | 469,566 | 473,561 | 299,666 | 120,291 |
| Payables turnover | 5.80 | 6.19 | 4.92 | 4.97 | 6.27 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,618,650K ÷ $451,680K
= 5.80
The payables turnover ratio measures how efficiently a company is managing its trade payables by evaluating the number of times the company pays off its suppliers within a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Based on the data provided for ChampionX Corp., we observe fluctuations in the payables turnover ratio over the past five years. In 2023, the payables turnover ratio decreased to 5.80 from 6.19 in 2022, indicating that the company took slightly longer to settle its payables compared to the prior year. Despite the decrease, the ratio remains at a reasonable level.
In 2021, there was a slight increase in the payables turnover ratio to 4.92 from 4.97 in 2020, suggesting that the company was managing its payables slightly more efficiently. The highest payables turnover ratio was recorded in 2019 at 6.27, indicating that ChampionX Corp. paid its suppliers more frequently that year.
Overall, the fluctuation in ChampionX Corp.'s payables turnover ratio suggests variations in the company's payment practices and relationships with suppliers over the years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial health and efficiency in managing its trade payables.
Peer comparison
Dec 31, 2023