ChampionX Corporation (CHX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 7.79 | 8.44 | 8.38 | 7.91 | 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 |
| 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 |
| Working capital turnover | 4.67 | 5.25 | 5.16 | 5.58 | 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 |
Based on the provided data, let's analyze ChampionX Corporation's activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. ChampionX Corporation's inventory turnover has shown a generally increasing trend from March 2020 to December 2024. This indicates that the company's inventory is being sold and replenished at a faster rate over time, which is a positive sign of operational efficiency.
2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects payments from its customers. ChampionX Corporation's receivables turnover has also shown a consistent upward trend from March 2020 to December 2024. This implies that the company is collecting receivables more rapidly, improving its cash flow and potentially reducing bad debt exposure.
3. Payables Turnover:
- The payables turnover ratio reveals how well the company manages its trade payables. ChampionX Corporation's payables turnover ratio has fluctuated, but on average, it has remained relatively stable over the period. This indicates that the company is maintaining a consistent pace in paying its suppliers, which can impact relationships with vendors and working capital management.
4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently the company utilizes its working capital to generate sales. ChampionX Corporation's working capital turnover has shown a mostly increasing trend, indicating that the company is effectively using its current assets to support sales growth. This suggests that the company is efficiently managing its working capital to drive revenue.
Overall, based on the activity ratios analysis, ChampionX Corporation appears to be effectively managing its inventory, receivables, payables, and working capital to improve operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.16 | 79.63 | 77.28 | 76.95 | 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 |
| Days of sales outstanding (DSO) | days | 46.88 | 43.23 | 43.56 | 46.14 | 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 |
| Number of days of payables | days | 68.00 | 66.33 | 69.47 | 75.39 | 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 |
ChampionX Corporation's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying suppliers.
1. Days of Inventory on Hand (DOH): The company's inventory turnover has improved over the years, with a decreasing trend in DOH from 102.66 days on March 31, 2020, to 74.16 days on December 31, 2024. This indicates that ChampionX is now holding less inventory on hand, which can result in reduced carrying costs and better liquidity.
2. Days of Sales Outstanding (DSO): The DSO metric shows how long it takes for the company to collect payments from its customers. ChampionX has effectively reduced its collection period over time, with DSO decreasing from 173.97 days on June 30, 2020, to 46.88 days on December 31, 2024. This suggests that the company has become more efficient in managing its accounts receivable and converting sales into cash.
3. Number of Days of Payables: This ratio reflects the number of days it takes for the company to pay its suppliers. ChampionX has maintained a stable payment cycle, with minor fluctuations in the number of days of payables ranging from 58.93 days on March 31, 2020, to 68.00 days on December 31, 2024. This suggests a consistent approach to managing its payables without causing strain on its cash flows.
Overall, ChampionX Corporation has shown improvements in its activity ratios over the years, indicating enhanced operational efficiency and effective management of working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.18 | 4.82 | 4.91 | 4.92 | 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 |
| Total asset turnover | 1.05 | 1.09 | 1.12 | 1.12 | 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 |
ChampionX Corporation's fixed asset turnover ratio has shown a consistent upward trend over the years, indicating improved efficiency in generating sales from fixed assets. The ratio increased from 4.65 on March 31, 2020, to 5.18 on December 31, 2024. This suggests that ChampionX has been able to utilize its fixed assets more effectively to generate revenue and support its operations.
On the other hand, the total asset turnover ratio for ChampionX Corporation has also shown a positive trend, albeit with some fluctuations. The ratio increased from 0.88 on March 31, 2020, to 1.05 on December 31, 2024. This indicates that the company has been able to generate more revenue relative to its total assets over time, reflecting improved efficiency in utilizing all assets, both fixed and current, to drive sales.
Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios are positive indicators of ChampionX Corporation's operational efficiency and effective utilization of assets to drive revenue growth.