ChampionX Corporation (CHX)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 7.03 7.31 7.44 7.21 6.33 5.96 5.60 4.95 5.26 5.01 4.81 4.40 3.40 2.79 2.10 4.99 5.14 5.06 4.82 4.78
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
Working capital turnover 5.85 5.49 5.79 6.20 5.95 5.36 4.80 4.63 4.67 4.48 4.18 3.47 2.95 2.19 1.55 3.57 3.85 3.69 3.76 3.80

Inventory turnover for ChampionX Corp. has been relatively consistent over the past eight quarters, ranging between 4.32 and 5.36. This indicates the company's efficiency in managing its inventory levels and converting them into sales.

Receivables turnover has shown an upward trend, increasing from 4.95 in Q1 2022 to 7.44 in Q2 2023. This suggests that ChampionX is collecting its accounts receivable more quickly, which is positive for cash flow and liquidity.

Payables turnover has fluctuated over the quarters but has generally remained within a range of 4.85 to 6.19. This implies that ChampionX is effectively managing its payables and maintaining good relationships with its suppliers.

Working capital turnover has also exhibited a consistent trend, with values ranging from 4.63 to 6.20. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.

Overall, ChampionX Corp. shows solid performance in terms of activity ratios, reflecting efficient management of its inventory, receivables, payables, and working capital.

Average number of days

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
Days of inventory on hand (DOH) days 72.70 80.78 77.05 74.13 68.11 73.86 84.59 92.53 84.99 80.53 79.87 86.61 105.30 152.79 239.23 102.66 102.29 102.04 106.18 105.03
Days of sales outstanding (DSO) days 51.91 49.95 49.09 50.63 57.64 61.28 65.22 73.79 69.37 72.87 75.81 82.97 107.49 130.71 173.97 73.16 70.94 72.10 75.71 76.41
Number of days of payables days 62.96 68.60 70.85 67.54 58.95 64.61 69.15 75.27 74.13 69.70 66.83 66.42 73.37 84.96 124.67 58.93 58.22 53.05 58.32 55.95

Based on the activity ratios data provided for ChampionX Corp., we can analyze the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): The trend in DOH shows that ChampionX Corp. has been effectively managing its inventory levels over the past few quarters. While there was a slight increase in DOH in Q3 and Q2 2023, the company managed to decrease it in Q4 2023 compared to the previous year. This indicates that the company is optimizing its inventory holding period, which is crucial for controlling costs and improving cash flow.

2. Days of Sales Outstanding (DSO): The DSO ratio measures how long it takes for the company to collect its receivables. The decreasing trend in DSO over the quarters indicates that ChampionX Corp. has been efficient in managing its accounts receivable. A lower DSO implies that the company is collecting payments from customers more quickly, which enhances cash flow and liquidity.

3. Number of Days of Payables: This ratio represents the number of days it takes for the company to pay its suppliers. The trend in the number of days of payables shows that ChampionX Corp. has been slightly increasing its payment period, which could indicate better negotiation terms with suppliers. By extending the payment period, the company can effectively manage its cash flow and working capital.

Overall, the analysis of ChampionX Corp.'s activity ratios suggests that the company is efficiently managing its inventory, receivables, and payables, which is essential for maintaining a healthy financial position and operational performance.

Long-term

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
Fixed asset turnover 5.13 4.98 5.12 5.26 5.31 5.04 4.61 4.27 4.00 3.79 3.39 2.79 2.22 1.66 1.15 4.65 4.56 4.80 4.93 5.05
Total asset turnover 1.16 1.15 1.17 1.17 1.12 1.07 0.99 0.91 0.87 0.84 0.80 0.67 0.55 0.42 0.31 0.88 0.59 0.61 0.63 0.62

ChampionX Corp.'s fixed asset turnover ratio has been fairly consistent over the past eight quarters, ranging between 4.27 and 5.26. This indicates that the company is generating between $4.27 and $5.26 in revenue for every dollar invested in fixed assets. The higher the fixed asset turnover ratio, the more efficiently the company is using its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio has also shown an increasing trend, improving from 0.91 in Q1 2022 to 1.16 in Q4 2023. This indicates that ChampionX Corp. is becoming more efficient in generating sales from its total assets, not just fixed assets. A total asset turnover ratio of 1.16 in Q4 2023 suggests that the company is generating $1.16 in revenue for every dollar invested in total assets.

Overall, both the fixed asset turnover ratio and the total asset turnover ratio show that ChampionX Corp. is effectively utilizing its assets to generate sales revenue. These ratios are helpful in assessing the company's operational efficiency and its ability to maximize the return on its asset investments.