ChampionX Corporation (CHX)
Total asset 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 |
| Total assets | US$ in thousands | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 | 1,922,820 |
| Total asset turnover | 1.16 | 1.12 | 0.87 | 0.55 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,758,280K ÷ $3,241,700K
= 1.16
Total asset turnover measures the efficiency with which ChampionX Corp. generates revenue from its total assets. The trend analysis of ChampionX Corp.'s total asset turnover shows an improving performance over the past five years. In 2019 and 2020, the total asset turnover was relatively low at 0.59 and 0.55 respectively, indicating that the company was generating $0.59 and $0.55 in sales for every dollar of assets.
However, from 2021 onwards, there has been a significant improvement in the total asset turnover, reaching 0.87 in 2021, 1.12 in 2022, and 1.16 in 2023. This suggests that ChampionX Corp. has been able to utilize its assets more efficiently to generate sales revenue. A higher total asset turnover ratio is generally seen as favorable, indicating that the company is generating more revenue per dollar of assets which could result in improved profitability and return on investment.
The increasing trend in total asset turnover indicates that ChampionX Corp. is becoming more efficient in its asset utilization and sales generation activities, which could be a positive sign for investors and stakeholders in the company.
Peer comparison
Dec 31, 2023