ChampionX Corporation (CHX)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.26 | 0.26 | 0.26 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.30 | 0.33 | 0.35 | 0.36 | 0.38 | 0.40 | 0.00 | 0.35 | 0.36 | 0.37 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $594,283K ÷ ($594,283K + $1,676,620K)
= 0.26
The debt-to-capital ratio of ChampionX Corp. has been relatively stable over the past eight quarters, ranging from 0.26 to 0.29. This ratio measures the proportion of the company's total debt to its total capital, indicating the extent to which debt is utilized in funding the company's operations and investments.
The consistent behavior of the debt-to-capital ratio suggests that ChampionX Corp. has maintained a balanced capital structure with a moderate level of debt in relation to its total capital. A lower ratio indicates lower financial risk and greater financial stability, as the company relies less on debt financing. Conversely, a higher ratio may signal higher financial leverage and associated risks.
Overall, ChampionX Corp.'s stable debt-to-capital ratio reflects a prudent approach to managing its capital structure and indicates a consistent level of debt usage over the analyzed period.
Peer comparison
Dec 31, 2023