ChampionX Corporation (CHX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 594,283 | 621,702 | 697,657 | 905,764 | 555,291 |
| Total assets | US$ in thousands | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 | 1,922,820 |
| Debt-to-assets ratio | 0.18 | 0.18 | 0.20 | 0.26 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $594,283K ÷ $3,241,700K
= 0.18
The debt-to-assets ratio for ChampionX Corp. has shown a decreasing trend over the past five years, indicating an improving financial position in terms of debt management and asset utilization.
In 2019 and 2020, the company had a relatively higher debt-to-assets ratio of 0.29 and 0.27, respectively, suggesting a higher proportion of assets financed by debt. However, over the subsequent years, the ratio decreased to 0.20 in 2021 and remained stable at 0.19 in both 2022 and 2023.
A lower debt-to-assets ratio generally indicates lower financial risk and a healthier balance sheet, as it signifies less reliance on debt to finance assets. ChampionX Corp.'s consistent decrease in this ratio suggests that the company has been effectively managing its debt levels and improving its asset base efficiency, which could lead to enhanced financial stability and flexibility in the long term.
Peer comparison
Dec 31, 2023