ChampionX Corporation (CHX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 498,504 | 336,844 | 353,452 | 379,254 | 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 | -771,247 | -759,246 | -619,361 |
| Long-term debt | US$ in thousands | 591,453 | 592,161 | 592,868 | 593,575 | 594,283 | 594,943 | 595,165 | 595,938 | 621,702 | 644,029 | 694,430 | 691,241 | 697,657 | 743,572 | 838,826 | 899,469 | 905,764 | 989,690 | 1,071,730 | — |
| Total stockholders’ equity | US$ in thousands | 1,846,440 | 1,814,310 | 1,745,160 | 1,710,460 | 1,676,620 | 1,721,480 | 1,730,030 | 1,688,710 | 1,694,550 | 1,710,690 | 1,808,320 | 1,792,230 | 1,770,640 | 1,727,000 | 1,674,320 | 1,644,770 | 1,625,970 | 1,599,550 | 1,598,700 | 388,767 |
| Return on total capital | 20.45% | 14.00% | 15.12% | 16.46% | 16.47% | 15.40% | 8.62% | 6.50% | 3.50% | 0.82% | 4.19% | 2.61% | 1.03% | 0.38% | -1.83% | -7.10% | -33.57% | -29.79% | -28.43% | -159.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $498,504K ÷ ($591,453K + $1,846,440K)
= 20.45%
ChampionX Corporation's return on total capital has shown a significant improvement over the years, reflecting a positive trend in their efficiency in generating returns from the total capital employed. The ratio was severely negative in the earlier periods, with figures as low as -159.31% in March 2020. However, there has been a consistent upward trajectory since then.
The return on total capital has gradually increased from negative values to positive figures, indicating that the company has enhanced its capital utilization and profitability. Notably, the ratio turned positive in March 2023, signifying a pivotal point where the company started generating returns above its total capital investment.
The most recent data as of December 31, 2024, reveals a return on total capital of 20.45%, showcasing the company's continued improvement in efficiency and profitability. This positive trend suggests that ChampionX Corporation has been successful in optimizing its capital structure and operations to drive higher returns for its investors.
Peer comparison
Dec 31, 2024