ChampionX Corporation (CHX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 507,681 | 288,557 | 250,187 | 251,678 | 201,421 |
| Short-term investments | US$ in thousands | — | 72,323 | — | — | — |
| Receivables | US$ in thousands | 466,782 | 534,534 | 601,061 | 584,440 | 559,545 |
| Total current liabilities | US$ in thousands | 785,872 | 782,749 | 858,976 | 802,325 | 622,560 |
| Quick ratio | 1.24 | 1.14 | 0.99 | 1.04 | 1.22 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($507,681K
+ $—K
+ $466,782K)
÷ $785,872K
= 1.24
The quick ratio of ChampionX Corporation has shown a fluctuating trend over the past five years. Starting at 1.22 in December 31, 2020, the ratio decreased to 1.04 by December 31, 2021, indicating a potential decrease in the company's ability to meet its short-term liabilities with its most liquid assets.
In the subsequent years, the quick ratio further declined to 0.99 by December 31, 2022, which may raise concerns about the company's liquidity position. However, there was a slight improvement in the ratio to 1.14 by December 31, 2023, suggesting a better ability to cover short-term obligations with quick assets.
By December 31, 2024, the quick ratio reached 1.24, surpassing the initial ratio in 2020, indicating an improved liquidity position and a healthier ability to meet short-term liabilities. Overall, while there have been fluctuations, the company has managed to maintain a quick ratio above 1 in the most recent year, which is generally considered a positive sign of liquidity.
Peer comparison
Dec 31, 2024