ChampionX Corporation (CHX)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 374,059 | 356,793 | 200,347 | 148,542 | 80,959 | 19,321 | 104,748 | 64,720 | 25,473 | 9,456 | -46,100 | -180,544 | -849,992 | -690,478 | -671,691 | -519,358 | 174,533 | 207,170 | 230,256 | 224,359 |
| Revenue (ttm) | US$ in thousands | 3,758,285 | 3,800,585 | 3,882,362 | 3,888,334 | 3,805,947 | 3,642,237 | 3,439,462 | 3,256,062 | 3,074,990 | 2,958,967 | 2,773,708 | 2,323,450 | 1,899,996 | 1,441,622 | 1,084,935 | 1,092,191 | 1,131,251 | 1,196,636 | 1,235,968 | 1,235,545 |
| Operating profit margin | 9.95% | 9.39% | 5.16% | 3.82% | 2.13% | 0.53% | 3.05% | 1.99% | 0.83% | 0.32% | -1.66% | -7.77% | -44.74% | -47.90% | -61.91% | -47.55% | 15.43% | 17.31% | 18.63% | 18.16% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $374,059K ÷ $3,758,285K
= 9.95%
The operating profit margin of ChampionX Corp. has shown a consistent improvement over the past eight quarters. The company's operating profit margin increased from 6.49% in Q1 2022 to 13.48% in Q4 2023. This indicates that ChampionX Corp. has been able to effectively control its operating expenses and/or increase its revenues over this period.
The gradual increase in the operating profit margin reflects the company's ability to generate more profit from its core operations relative to its total revenue. This may be attributed to cost-saving measures, operational efficiencies, or successful pricing strategies.
Overall, the trend in ChampionX Corp.'s operating profit margin suggests improving profitability and operational performance, which can be considered a positive indicator of the company's financial health and management effectiveness.
Peer comparison
Dec 31, 2023