ChampionX Corporation (CHX)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,633,980 | 3,758,280 | 3,805,950 | 3,074,990 | 1,900,000 |
| Total assets | US$ in thousands | 3,470,250 | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 |
| Total asset turnover | 1.05 | 1.16 | 1.12 | 0.87 | 0.55 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,633,980K ÷ $3,470,250K
= 1.05
Based on the provided data, ChampionX Corporation's total asset turnover has shown a positive trend over the last five years. The total asset turnover ratio measures the efficiency of a company in generating sales revenue from its investments in assets. In December 31, 2020, the total asset turnover was 0.55, indicating that the company generated $0.55 in sales for every dollar invested in assets.
However, the total asset turnover significantly improved in the subsequent years, reaching 0.87 by December 31, 2021, and further increasing to 1.12 by December 31, 2022. This indicates that the company became more efficient in utilizing its assets to generate sales revenue during this period.
In the following years, the total asset turnover continued to improve, reaching 1.16 by December 31, 2023. However, there was a slight decrease to 1.05 by December 31, 2024. Overall, the increasing trend in total asset turnover suggests that ChampionX Corporation has been able to generate more sales revenue relative to its investment in assets, indicating improved efficiency in asset utilization. It is important for the company to sustain this trend to ensure continued profitability and growth.
Peer comparison
Dec 31, 2024