ChampionX Corporation (CHX)
Working capital 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 |
| Total current assets | US$ in thousands | 1,425,420 | 1,485,700 | 1,484,830 | 1,468,500 | 1,498,580 | 1,476,830 | 1,469,920 | 1,535,290 | 1,460,900 | 1,417,730 | 1,350,040 | 1,301,250 | 1,265,840 | 1,232,750 | 1,258,550 | 504,503 | 493,440 | 531,138 | 529,545 | 537,798 |
| Total current liabilities | US$ in thousands | 782,749 | 793,876 | 814,455 | 841,007 | 858,976 | 796,675 | 753,033 | 831,875 | 802,325 | 756,679 | 686,578 | 632,435 | 622,560 | 574,407 | 558,349 | 198,752 | 199,681 | 206,453 | 201,104 | 212,273 |
| Working capital turnover | 5.85 | 5.49 | 5.79 | 6.20 | 5.95 | 5.36 | 4.80 | 4.63 | 4.67 | 4.48 | 4.18 | 3.47 | 2.95 | 2.19 | 1.55 | 3.57 | 3.85 | 3.69 | 3.76 | 3.80 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,758,285K ÷ ($1,425,420K – $782,749K)
= 5.85
ChampionX Corp.'s working capital turnover has shown variability over the past quarters, ranging from 4.63 to 6.20. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations.
In the most recent quarter, Q4 2023, ChampionX Corp. achieved a working capital turnover of 5.85, showing a slight increase from the previous quarter. This suggests that the company was able to generate $5.85 in revenue for every dollar of working capital invested during the period.
Overall, the trend in working capital turnover for ChampionX Corp. has been positive, with fluctuations observed but generally staying above 5. This indicates that the company is efficiently utilizing its working capital resources to drive revenue generation. Further analysis and comparison with industry benchmarks could provide more insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023