ChampionX Corporation (CHX)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 288,557 | 285,006 | 263,088 | 247,996 | 250,187 | 187,472 | 167,282 | 177,109 | 251,678 | 253,855 | 238,995 | 259,821 | 201,421 | 171,462 | 141,895 | 53,636 | 35,290 | 40,627 | 24,336 | 28,354 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 534,534 | 520,106 | 522,106 | 539,380 | 601,061 | 611,501 | 614,607 | 658,292 | 584,440 | 590,777 | 576,090 | 528,142 | 559,545 | 516,245 | 517,110 | 218,903 | 219,874 | 236,381 | 256,379 | 258,650 |
| 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 |
| Quick ratio | 1.05 | 1.01 | 0.96 | 0.94 | 0.99 | 1.00 | 1.04 | 1.00 | 1.04 | 1.12 | 1.19 | 1.25 | 1.22 | 1.20 | 1.18 | 1.37 | 1.28 | 1.34 | 1.40 | 1.35 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($288,557K
+ $—K
+ $534,534K)
÷ $782,749K
= 1.05
The quick ratio of ChampionX Corp. has fluctuated over the past eight quarters, ranging from a low of 1.02 in Q1 2023 to a high of 1.13 in Q4 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates the company has an adequate level of liquid assets to cover its current liabilities, with a higher ratio suggesting a stronger liquidity position.
ChampionX Corp.'s quick ratio has generally remained above 1 over the period analyzed, indicating a relatively sound liquidity position. However, the slight fluctuations in the ratio suggest potential variations in the company's ability to quickly convert its current assets into cash to meet short-term obligations. Further analysis of the underlying components of current assets and liabilities may provide more insights into the company's cash conversion cycle and working capital management efficiency.
Peer comparison
Dec 31, 2023