ChampionX Corporation (CHX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,470,250 | 3,241,700 | 3,387,480 | 3,534,700 | 3,475,780 |
| Total stockholders’ equity | US$ in thousands | 1,846,440 | 1,676,620 | 1,694,550 | 1,770,640 | 1,625,970 |
| Financial leverage ratio | 1.88 | 1.93 | 2.00 | 2.00 | 2.14 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,470,250K ÷ $1,846,440K
= 1.88
The financial leverage ratio of ChampionX Corporation has exhibited a decreasing trend over the years, declining from 2.14 in December 2020 to 1.88 in December 2024. This indicates that the company has been relying less on debt to finance its operations compared to its equity. A decreasing financial leverage ratio can be a positive sign as it suggests a lower level of financial risk and potential vulnerability to economic downturns. ChampionX Corporation's decreasing leverage ratio may indicate a stronger financial position and improved stability in its capital structure over the years.
Peer comparison
Dec 31, 2024