ChampionX Corporation (CHX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,241,700 | 3,311,200 | 3,329,840 | 3,327,340 | 3,387,480 | 3,402,780 | 3,463,150 | 3,571,720 | 3,534,700 | 3,503,000 | 3,486,010 | 3,475,790 | 3,475,780 | 3,453,730 | 3,520,830 | 1,245,240 | 1,922,820 | 1,972,250 | 1,975,440 | 1,988,610 |
| Operating ROA | 11.54% | 10.78% | 6.02% | 4.46% | 2.39% | 0.57% | 3.02% | 1.81% | 0.72% | 0.27% | -1.32% | -5.19% | -24.45% | -19.99% | -19.08% | -41.71% | 9.08% | 10.50% | 11.66% | 11.28% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $374,059K ÷ $3,241,700K
= 11.54%
ChampionX Corp.'s operating return on assets (operating ROA) has shown a positive trend over the past eight quarters. The operating ROA increased from 5.92% in Q1 2022 to 15.63% in Q4 2023, indicating an improving operational efficiency in generating profits from its assets. This upward trend suggests that the company has been effectively utilizing its assets to generate operating income.
The consistent improvement in operating ROA reflects favorable management of the company's operations, indicating efficient asset utilization and potentially effective cost control measures. The company's ability to increase its operating ROA over time points towards a positive outlook for profitability and overall financial performance.
Overall, ChampionX Corp.'s operating ROA trajectory demonstrates a strengthening operating performance and efficiency in generating profits relative to its asset base. Investors and stakeholders may view this trend positively as it implies the company's ability to generate more earnings from its assets over time.
Peer comparison
Dec 31, 2023