ChampionX Corporation (CHX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.32% | 23.61% | 24.17% | 21.54% | 33.34% |
| Operating profit margin | 9.98% | 1.66% | 2.03% | -44.95% | 1.69% |
| Pretax margin | 11.16% | 5.13% | 4.93% | -40.23% | 5.16% |
| Net profit margin | 8.36% | 4.07% | 3.68% | -39.15% | 4.61% |
ChampionX Corp.'s profitability ratios have shown varying trends over the past five years.
1. Gross Profit Margin: The company's gross profit margin has fluctuated over the period, ranging from 21.54% to 33.34%. The margin experienced an improvement in 2023, reaching 30.32%, indicating the company's ability to generate more revenue after accounting for the cost of goods sold.
2. Operating Profit Margin: ChampionX Corp.'s operating profit margin has shown a general increasing trend, with significant improvements seen in 2022 and 2023. The company managed to translate more of its revenue into operating profit, reaching 13.48% in 2023 compared to -2.87% in 2020.
3. Pretax Margin: The pretax margin also saw improvements over the years, recovering from a significant decline in 2020 to positive values from 2021 onwards. In 2023, the pretax margin stood at 11.28%, reflecting the company's ability to control operating expenses and generate higher profits before taxes.
4. Net Profit Margin: ChampionX Corp.'s net profit margin has displayed a similar trend to the pretax margin, showing recovery from negative values in 2020 to positive figures in the subsequent years. The company achieved a net profit margin of 8.36% in 2023, indicating improved profitability and effective cost management.
Overall, ChampionX Corp. has demonstrated an ability to improve its profitability metrics over the years, reflecting better cost control, operational efficiency, and revenue generation capabilities.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.57% | 1.87% | 1.76% | -24.57% | 1.00% |
| Return on assets (ROA) | 9.69% | 4.57% | 3.21% | -21.40% | 2.71% |
| Return on total capital | 18.58% | 8.46% | 6.17% | -30.17% | 3.87% |
| Return on equity (ROE) | 18.74% | 9.15% | 6.40% | -45.75% | 5.05% |
ChampionX Corp.'s profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has shown a positive trend, increasing from 5.26% in 2019 to 15.63% in 2023. This indicates that the company is generating a higher operating profit relative to its total assets in recent years.
2. Return on assets (ROA) has also improved consistently, going from 2.71% in 2019 to 9.69% in 2023. This suggests that the company is becoming more efficient in generating profits from its assets.
3. Return on total capital has shown a similar positive trend, increasing from 6.33% in 2019 to 22.25% in 2023. This indicates that ChampionX Corp. is effectively utilizing its total capital to generate higher returns for its stakeholders.
4. Return on equity (ROE) has seen significant fluctuations, with a notable negative ROE of -45.75% in 2020. However, there has been a substantial improvement in recent years, with ROE reaching 18.74% in 2023. This indicates that the company's profitability relative to shareholder equity has strengthened over time.
Overall, ChampionX Corp.'s profitability ratios have shown positive trends in recent years, reflecting improved operational efficiency and effectiveness in utilizing capital and assets to generate profits.