ChampionX Corporation (CHX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 | 1,922,820 |
| Total stockholders’ equity | US$ in thousands | 1,676,620 | 1,694,550 | 1,770,640 | 1,625,970 | 1,032,960 |
| Financial leverage ratio | 1.93 | 2.00 | 2.00 | 2.14 | 1.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,241,700K ÷ $1,676,620K
= 1.93
The financial leverage ratio of ChampionX Corp. has fluctuated over the past five years. The ratio indicates the company's level of debt relative to its equity. In 2023, the financial leverage ratio stood at 1.93, showing a slight decrease from the previous year's ratio of 2.00. This suggests that the company relied less on debt financing in 2023 compared to 2022.
Looking further back, in 2021 and 2022, ChampionX Corp. maintained a stable financial leverage ratio of 2.00. However, in 2020, the ratio increased to 2.14, indicating a higher proportion of debt in the company's capital structure. This may suggest increased financial risk during that period.
In contrast, the lowest ratio of 1.86 was observed in 2019, implying a lower reliance on debt and potentially a stronger equity position for the company at that time.
Overall, analyzing the trend of the financial leverage ratio for ChampionX Corp., it appears that the company's leverage has varied over the years, with fluctuations in the balance between debt and equity financing. This ratio is important for assessing the company's risk exposure and financial stability. Further investigation into the factors driving these changes would provide a deeper understanding of ChampionX Corp.'s financial strategy and performance.
Peer comparison
Dec 31, 2023