ChampionX Corporation (CHX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.82 | 1.74 | 1.82 | 2.03 | 2.47 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,425,420K ÷ $782,749K
= 1.82
The current ratio of ChampionX Corp. has exhibited a declining trend over the past five years from 2.47 in 2019 to 1.82 in both 2021 and 2023, with a peak at 2.03 in 2020. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 signifies that the company has more current assets than current liabilities, indicating a healthy liquidity position.
While ChampionX Corp.'s current ratio remains above 1 throughout the five-year period, the downward trend raises some concerns about its liquidity management. A declining current ratio could suggest potential challenges in meeting short-term obligations with current assets. However, it is important to note that the current ratio is just one measure of liquidity, and a comprehensive analysis should also consider other liquidity ratios and the company's operational context.
Peer comparison
Dec 31, 2023