ChampionX Corporation (CHX)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 3,241,700 | 3,311,200 | 3,329,840 | 3,327,340 | 3,387,480 | 3,402,780 | 3,463,150 | 3,571,720 | 3,534,700 | 3,503,000 | 3,486,010 | 3,475,790 | 3,475,780 | 3,453,730 | 3,520,830 | 1,245,240 | 1,922,820 | 1,972,250 | 1,975,440 | 1,988,610 |
| Debt-to-assets ratio | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.20 | 0.19 | 0.20 | 0.21 | 0.24 | 0.26 | 0.26 | 0.29 | 0.30 | 0.00 | 0.29 | 0.30 | 0.31 | 0.32 |
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 of ChampionX Corp. has been relatively stable over the past year, ranging between 0.18 and 0.20. This ratio indicates that, on average, 18% to 20% of the company's assets are financed by debt, with the remaining financed by equity.
A decreasing trend in the debt-to-assets ratio could signify that the company is becoming less reliant on debt financing, which can be viewed positively as it indicates a lower level of financial risk. On the other hand, a significant increase in this ratio could indicate a higher level of debt relative to assets, which may raise concerns about the company's financial health and ability to cover its debt obligations.
Overall, ChampionX Corp.'s consistent debt-to-assets ratio suggests a balanced capital structure with a reasonable level of debt utilization to finance its operations and growth initiatives. However, it is essential for the company to monitor this ratio closely to ensure it remains at a sustainable level and does not pose undue financial risk.
Peer comparison
Dec 31, 2023