ChampionX Corporation (CHX)
Working capital 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 |
| Total current assets | US$ in thousands | 1,563,900 | 1,438,250 | 1,445,190 | 1,476,160 | 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 |
| Total current liabilities | US$ in thousands | 785,872 | 740,186 | 727,705 | 807,193 | 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 |
| Working capital turnover | 4.67 | 5.25 | 5.16 | 5.58 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,633,983K ÷ ($1,563,900K – $785,872K)
= 4.67
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate sales revenue. It indicates the number of times a company's working capital is used in a given period to support its operations.
Analyzing the working capital turnover of ChampionX Corporation from March 31, 2020, to December 31, 2024, we observe that the ratio fluctuates over the period. The ratio started at 3.57 in March 31, 2020, which means that the company turned over its working capital 3.57 times during that period to generate revenue. The ratio decreased to 1.55 in June 30, 2020, indicating a decrease in efficiency in utilizing working capital.
However, the trend improved in the following quarters, with an upward trend until March 31, 2024, where the ratio reached 5.58. This indicates that ChampionX Corporation significantly improved its efficiency in managing working capital over the years.
The highest working capital turnover was recorded in December 31, 2022, at 5.95, suggesting that the company managed to generate more revenue relative to its working capital during that period. The company achieved a relatively stable working capital turnover ratio in the range of 4.67 to 6.20 in the later periods, indicating consistency in utilizing its working capital efficiently to support operations and revenue generation.
Overall, the increasing trend of the working capital turnover ratio for ChampionX Corporation indicates improving efficiency in managing working capital and generating sales revenue over the analyzed period. It shows that the company is effectively utilizing its current assets to drive business activities and generate returns for its shareholders.
Peer comparison
Dec 31, 2024