ChampionX Corporation (CHX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,758,285 | 3,800,585 | 3,882,362 | 3,888,334 | 3,805,947 | 3,642,237 | 3,439,462 | 3,256,062 | 3,074,990 | 2,958,967 | 2,773,708 | 2,323,450 | 1,899,996 | 1,441,622 | 1,084,935 | 1,092,191 | 1,131,251 | 1,196,636 | 1,235,968 | 1,235,545 |
| Receivables | US$ in thousands | 534,534 | 520,106 | 522,106 | 539,380 | 601,061 | 611,501 | 614,607 | 658,292 | 584,440 | 590,777 | 576,090 | 528,142 | 559,545 | 516,245 | 517,110 | 218,903 | 219,874 | 236,381 | 256,379 | 258,650 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,758,285K ÷ $534,534K
= 7.03
The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a specific period. In the case of ChampionX Corp., we observe a trend of improving receivables turnover over the past eight quarters, indicating more effective management of accounts receivable.
The receivables turnover ratio has increased steadily from Q1 2022 (4.95) to Q4 2023 (7.03), showing that ChampionX Corp. has become more efficient in collecting payments from customers over time. This suggests that the company has been able to convert its accounts receivable into cash more frequently in recent quarters.
A higher receivables turnover ratio generally signifies that the company has efficient credit policies, effective collection procedures, or a high proportion of quick-paying customers. In the case of ChampionX Corp., the increasing trend in receivables turnover indicates that the company is improving its credit management and collection processes.
Overall, the rising trend in receivables turnover for ChampionX Corp. reflects positively on the company's liquidity and ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2023