ChampionX Corporation (CHX)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 507,681 | 389,109 | 393,297 | 386,017 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 466,782 | 434,107 | 441,401 | 471,813 | 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 |
| 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 |
| Quick ratio | 1.24 | 1.11 | 1.15 | 1.06 | 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 |
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 some fluctuations over the past few years, which is a key indicator of the company's liquidity and ability to meet short-term obligations with its most liquid assets.
The quick ratio provides insight into the company's ability to cover its current liabilities with its quick assets (current assets excluding inventory). A quick ratio above 1 indicates that the company has enough quick assets to cover its current liabilities.
Analyzing the data provided, we can see that the quick ratio was relatively stable around the range of 1.18 to 1.37 from March 2020 to March 2021, which suggests a healthy liquidity position during that period. However, there was a slight decline in the quick ratio to 1.00 by June 2022, indicating a potential strain on the company's ability to cover its short-term obligations.
Subsequently, the quick ratio fluctuated between 0.94 and 1.06 until June 2024, with the ratio showing some improvement towards the end of the period, reaching 1.15 in June 2024. This improvement indicates that ChampionX Corporation may have strengthened its liquidity position and ability to meet short-term obligations.
Overall, while the company experienced fluctuations in its quick ratio over the years, it is important for investors and stakeholders to monitor this ratio closely to assess ChampionX Corporation's liquidity and financial health accurately.
Peer comparison
Dec 31, 2024