ChampionX Corporation (CHX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 498,743 | 478,386 | 63,234 | 62,278 | -854,063 |
| Total assets | US$ in thousands | 3,470,250 | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 |
| Operating ROA | 14.37% | 14.76% | 1.87% | 1.76% | -24.57% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $498,743K ÷ $3,470,250K
= 14.37%
ChampionX Corporation's operating return on assets (operating ROA) has shown a significant improvement over the years. In December 31, 2020, the operating ROA was at a negative 24.57%, indicating operational inefficiency or potential financial challenges. However, by December 31, 2021, the operating ROA improved to 1.76%, reflecting a turnaround in operational performance.
Subsequently, in December 31, 2022, the operating ROA continued to increase to 1.87%, showcasing further enhancement in the company's ability to generate operating profits relative to its assets. The trend of improvement persisted in December 31, 2023, with the operating ROA reaching 14.76%, demonstrating a significant boost in profitability and operational efficiency.
By December 31, 2024, the operating ROA slightly decreased to 14.37%, which is still considerably higher compared to the initial negative figure in 2020. This overall upward trajectory in operating ROA indicates that ChampionX Corporation has made strides in optimizing its asset utilization and operational performance, leading to improved profitability over the years.
Peer comparison
Dec 31, 2024