ChampionX Corporation (CHX)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,633,983 | 3,665,501 | 3,698,751 | 3,732,079 | 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 |
| Receivables | US$ in thousands | 466,782 | 434,107 | 441,401 | 471,813 | 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 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,633,983K ÷ $466,782K
= 7.79
The receivables turnover ratio for ChampionX Corporation has shown a fluctuating trend over the past few years. The ratio was relatively low at 2.10 in June 2020 but gradually increased to 8.44 by September 2024, indicating an improvement in the company's efficiency in collecting receivables from customers.
The company's ability to convert its accounts receivable into cash has generally been on an upward trajectory, reaching a peak of 8.44 by the end of September 2024. A higher receivables turnover ratio implies that ChampionX is collecting its receivables more efficiently, which is a positive sign for the company's liquidity and overall financial health.
Investors and analysts may view the increasing trend in the receivables turnover ratio favorably as it indicates that ChampionX is managing its accounts receivable effectively. However, it is essential to continue monitoring this metric to ensure that the company maintains its efficient collection practices in the future.
Peer comparison
Dec 31, 2024