ChampionX Corporation (CHX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 | -771,247 | -759,246 | -619,361 | 61,450 | 174,856 | 204,728 | 211,279 |
| Long-term debt | US$ in thousands | 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 | — | 555,291 | 588,580 | 613,301 | 637,647 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,032,960 | 1,038,800 | 1,028,930 | 1,002,450 |
| Return on total capital | 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% | 3.87% | 10.74% | 12.47% | 12.88% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $374,059K ÷ ($594,283K + $1,676,620K)
= 16.47%
ChampionX Corp's return on total capital has shown a promising upward trend over the last eight quarters, indicating improved efficiency in utilizing its total capital to generate earnings. The company's return on total capital increased steadily from Q1 2022 to reach 22.25% in Q4 2023, reflecting a strong performance in maximizing returns relative to the total capital employed. This consistent improvement suggests effective capital allocation strategies and operational performance, which have contributed positively to the company's profitability and shareholder value. Overall, the trend in ChampionX Corp's return on total capital demonstrates a positive trajectory and effective management of its capital resources.
Peer comparison
Dec 31, 2023