ChampionX Corporation (CHX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,846,440 | 1,676,620 | 1,694,550 | 1,770,640 | 1,625,970 |
| ROE | 17.35% | 18.74% | 9.15% | 6.40% | -45.75% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $320,266K ÷ $1,846,440K
= 17.35%
ChampionX Corporation's return on equity (ROE) has shown a notable improvement over the past few years, reflecting a positive trend in the company's profitability and efficiency in generating returns for its shareholders. Starting from a negative ROE of -45.75% in December 2020, the company managed to turn the situation around and achieve a ROE of 6.40% in December 2021. This upward trajectory continued with ROE figures of 9.15% in December 2022, 18.74% in December 2023, and 17.35% in December 2024.
The improvement in ROE indicates that ChampionX Corporation has been able to effectively utilize shareholder equity to generate profits and create value. The significant increase in ROE from negative territory to double-digit percentages suggests that the company's financial performance has strengthened, potentially due to improved operational efficiency, better cost management, increased revenue generation, or strategic investments.
Overall, ChampionX Corporation's increasing ROE demonstrates a positive trend in the company's performance and efficiency in creating value for its shareholders over the analyzed period.
Peer comparison
Dec 31, 2024