ChampionX Corporation (CHX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 320,266 | 314,238 | 154,969 | 113,299 | -743,930 |
| Total assets | US$ in thousands | 3,470,250 | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 |
| ROA | 9.23% | 9.69% | 4.57% | 3.21% | -21.40% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $320,266K ÷ $3,470,250K
= 9.23%
The return on assets (ROA) of ChampionX Corporation has exhibited variability over the past five years.
1. In December 31, 2020, the ROA was -21.40%, indicating that for that fiscal year, the company generated a negative return relative to its total assets. This could suggest inefficiency in asset utilization or potentially the presence of significant one-time expenses impacting profitability.
2. By December 31, 2021, the ROA improved significantly, reaching 3.21%. This positive shift indicates a turnaround in asset productivity and profitability, which may be attributed to strategic operational improvements or cost-saving measures.
3. Continuing the positive trend, in December 31, 2022, the ROA further increased to 4.57%. This suggests continued effectiveness in utilizing assets to generate profit, potentially reflecting sound management decisions and better operational performance.
4. The ROA notably improved to 9.69% by December 31, 2023, indicating a substantial enhancement in the company's ability to generate profit from its assets. This significant jump could signal successful strategic initiatives, increased revenues, or enhanced cost management practices.
5. As of December 31, 2024, the ROA slightly decreased to 9.23%. Despite the slight dip, the ROA remains at a relatively high level, showcasing ChampionX Corporation's sustained ability to efficiently utilize its assets to generate profits.
Overall, the upward trajectory of ChampionX Corporation's ROA highlights an improving trend in asset profitability and effective management of resources over the analyzed period.
Peer comparison
Dec 31, 2024