ChampionX Corporation (CHX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 375,045 | 63,234 | 62,278 | -854,063 | 19,155 |
| Total assets | US$ in thousands | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 | 1,922,820 |
| Operating ROA | 11.57% | 1.87% | 1.76% | -24.57% | 1.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $375,045K ÷ $3,241,700K
= 11.57%
ChampionX Corp.'s operating return on assets (operating ROA) has shown a positive trend over the past five years. The company's operating ROA increased from -1.57% in 2020 to 15.63% in 2023, indicating a significant improvement in profitability and operational efficiency. This upward trajectory suggests that ChampionX has been able to generate more operating income relative to its total assets, reflecting better management of its asset base.
The substantial improvement in operating ROA from 2020 to 2023 signifies that the company has been successful in optimizing its asset utilization and implementing strategies to boost operational performance. The positive trend in operating ROA over the years is a positive signal for investors and stakeholders, indicating that ChampionX has been able to enhance its profitability and generate a better return on its assets.
Overall, ChampionX Corp.'s improving operating ROA trend demonstrates the company's ability to efficiently generate operating profits from its asset base, highlighting its effective operational management and potential for sustained financial performance.
Peer comparison
Dec 31, 2023