ChampionX Corporation (CHX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,758,280 | 3,805,950 | 3,074,990 | 1,900,000 | 1,131,250 |
| Receivables | US$ in thousands | 534,534 | 601,061 | 584,440 | 559,545 | 219,874 |
| Receivables turnover | 7.03 | 6.33 | 5.26 | 3.40 | 5.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,758,280K ÷ $534,534K
= 7.03
ChampionX Corp.'s receivables turnover has shown a positive trend over the past five years, indicating the company's ability to efficiently collect outstanding receivables. The ratio has increased steadily from 5.14 in 2019 to 7.03 in 2023. This improvement suggests that ChampionX Corp. has been more effective in converting its accounts receivable into cash during each year.
A higher receivables turnover ratio typically indicates that the company is managing its credit policy well and collecting receivables promptly. It also suggests that ChampionX Corp. has strong customer relationships and credit management practices in place.
Overall, the increasing trend in receivables turnover reflects positively on ChampionX Corp.'s financial performance and operational efficiency in managing its accounts receivable effectively over the years.
Peer comparison
Dec 31, 2023