ChampionX Corporation (CHX)
Debt-to-equity 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-equity ratio | 0.32 | 0.35 | 0.37 | 0.39 | 0.56 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $591,453K ÷ $1,846,440K
= 0.32
ChampionX Corporation has shown a decreasing trend in its debt-to-equity ratio over the past five years. The ratio decreased from 0.56 as of December 31, 2020, to 0.32 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt in relation to equity over the years. A decreasing debt-to-equity ratio is generally viewed positively by investors and creditors, as it suggests improved financial stability and lower risk associated with debt. ChampionX Corporation's decreasing trend in the debt-to-equity ratio reflects potential financial strength and effective management of its capital structure.
Peer comparison
Dec 31, 2024