ChampionX Corporation (CHX)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 591,453 | 594,283 | 621,702 | 697,657 | 905,764 |
| Total stockholders’ equity | US$ in thousands | 1,846,440 | 1,676,620 | 1,694,550 | 1,770,640 | 1,625,970 |
| Debt-to-capital ratio | 0.24 | 0.26 | 0.27 | 0.28 | 0.36 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $591,453K ÷ ($591,453K + $1,846,440K)
= 0.24
The debt-to-capital ratio of ChampionX Corporation has shown a decreasing trend over the last five years, dropping from 0.36 in December 2020 to 0.24 in December 2024. This indicates that the company has been steadily reducing its reliance on debt financing relative to its total capital structure. A declining debt-to-capital ratio generally suggests improved financial health and stability, as it signifies lower financial risk and a stronger equity base. ChampionX Corporation's decreasing debt-to-capital ratio may reflect a more conservative capital structure strategy, potentially leading to enhanced creditworthiness and better long-term sustainability.
Peer comparison
Dec 31, 2024