ChampionX Corporation (CHX)
Payables 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 |
| Payables | US$ in thousands | 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 | 120,291 | 114,185 | 128,664 | 124,100 |
| Payables turnover | 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 | 6.27 | 6.88 | 6.26 | 6.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,618,646K ÷ $451,680K
= 5.80
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, while a lower ratio suggests longer payment periods.
ChampionX Corp.'s payables turnover ratio has fluctuated over the past eight quarters, ranging from 4.85 to 6.19. The trend shows that in Q4 2022, the ratio was at its highest at 6.19 before decreasing in subsequent quarters. By Q1 2023, the ratio had dropped to 5.40, indicating a slower rate of paying off accounts payable compared to the previous quarter.
Overall, ChampionX Corp.'s payables turnover has generally been above 5.0, suggesting that the company is efficiently managing its payables by regularly paying off its suppliers. However, the variations in the ratio over the quarters may indicate changes in the company's payment policies, supplier relationships, or overall financial health that should be further investigated and monitored for potential impacts on cash flow and liquidity.
Peer comparison
Dec 31, 2023