ChampionX Corporation (CHX)
Working capital 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 current assets | US$ in thousands | 1,425,420 | 1,498,580 | 1,460,900 | 1,265,840 | 493,440 |
| Total current liabilities | US$ in thousands | 782,749 | 858,976 | 802,325 | 622,560 | 199,681 |
| Working capital turnover | 5.85 | 5.95 | 4.67 | 2.95 | 3.85 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,758,280K ÷ ($1,425,420K – $782,749K)
= 5.85
ChampionX Corp.'s working capital turnover shows a fluctuating trend over the past five years. The ratio indicates how effectively the company is utilizing its working capital to generate sales revenue. A higher turnover ratio is generally preferred as it signifies efficient management of working capital.
In 2023, ChampionX Corp. achieved a working capital turnover of 5.85, a slight decrease from the previous year's ratio of 5.95. This suggests that the company is still effectively using its working capital to generate sales, although there was a minor decline in efficiency compared to the prior year.
Looking further back, in 2021, the company's working capital turnover was 4.67, indicating a lower level of efficiency in utilizing its working capital to generate sales compared to the more recent years. In 2020 and 2019, the ratios were 2.95 and 3.85 respectively, showing a significant improvement in the company's working capital management over these years.
Overall, ChampionX Corp. has demonstrated varying levels of efficiency in converting its working capital into sales revenue over the past five years. Monitoring this ratio can help assess the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023