ChampionX Corporation (CHX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 288,557 | 250,187 | 251,678 | 201,421 | 35,290 |
| Short-term investments | US$ in thousands | 72,323 | — | — | — | — |
| Receivables | US$ in thousands | 534,534 | 601,061 | 584,440 | 559,545 | 219,874 |
| Total current liabilities | US$ in thousands | 782,749 | 858,976 | 802,325 | 622,560 | 199,681 |
| Quick ratio | 1.14 | 0.99 | 1.04 | 1.22 | 1.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($288,557K
+ $72,323K
+ $534,534K)
÷ $782,749K
= 1.14
The quick ratio of ChampionX Corp. has shown a decreasing trend over the past five years, from 1.41 in 2019 to 1.13 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has declined over this period. A quick ratio above 1 implies that ChampionX Corp. has an appropriate level of liquid assets to cover its current liabilities, but the decreasing trend raises concerns about the company's liquidity management. It is important for ChampionX Corp. to closely monitor its liquidity position and consider strategies to improve its quick ratio to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023