ChampionX Corporation (CHX)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,188,700 | 1,139,640 | 898,664 | 743,275 | 409,172 |
| Revenue | US$ in thousands | 3,633,980 | 3,758,280 | 3,805,950 | 3,074,990 | 1,900,000 |
| Gross profit margin | 32.71% | 30.32% | 23.61% | 24.17% | 21.54% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,188,700K ÷ $3,633,980K
= 32.71%
Based on the provided data, ChampionX Corporation's gross profit margin has shown an increasing trend over the years, starting at 21.54% as of December 31, 2020, and steadily increasing to 32.71% as of December 31, 2024. This indicates that the company has been able to effectively manage its cost of goods sold and improve its revenue generation efficiency.
The improvement in gross profit margin suggests that ChampionX Corporation has been able to enhance its pricing strategies, streamline its production processes, negotiate better supplier prices, or improve its product mix to generate higher margins. A rising gross profit margin is generally seen as a positive indicator of a company's operational efficiency and value creation for shareholders.
The company's ability to consistently enhance its gross profit margin over the years may indicate effective cost control measures and pricing strategies that have positively impacted its profitability. However, it is important to consider other financial metrics and factors in conjunction with the gross profit margin to gain a comprehensive understanding of ChampionX Corporation's overall financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024