ChampionX Corporation (CHX)
Payables 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 |
| Payables | US$ in thousands | 455,531 | 455,485 | 484,472 | 532,205 | 451,680 | 500,021 | 550,827 | 539,166 | 469,566 | 499,371 | 496,197 | 508,825 | 473,561 | 430,576 | 391,213 | 333,765 | 299,666 | 262,092 | 274,964 | 118,791 |
| Payables turnover | 5.37 | 5.50 | 5.25 | 4.84 | 5.80 | 5.32 | 5.15 | 5.40 | 6.19 | 5.65 | 5.28 | 4.85 | 4.92 | 5.24 | 5.46 | 5.50 | 4.97 | 4.30 | 2.93 | 6.19 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,445,281K ÷ $455,531K
= 5.37
The payables turnover ratio measures how efficiently a company is managing its suppliers by paying its accounts payable. It is calculated as the cost of goods sold divided by the average accounts payable balance.
Analyzing the payables turnover of ChampionX Corporation from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The ratio ranged from a low of 2.93 on June 30, 2020, to a high of 6.19 on multiple occasions, including March 31, 2020, and December 31, 2022.
A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, potentially reflecting strong liquidity or efficient management of working capital. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could impact supplier relationships or indicate liquidity challenges.
ChampionX Corporation's payables turnover ratio showed some variability but generally remained within a moderate range over the period, indicating a reasonably consistent approach to managing its accounts payable. Further analysis would be needed to understand the specific factors driving the changes in the ratio and their implications for the company's financial management.
Peer comparison
Dec 31, 2024