ChampionX Corporation (CHX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,241,700 | 3,311,200 | 3,329,840 | 3,327,340 | 3,387,480 | 3,402,780 | 3,463,150 | 3,571,720 | 3,534,700 | 3,503,000 | 3,486,010 | 3,475,790 | 3,475,780 | 3,453,730 | 3,520,830 | 1,245,240 | 1,922,820 | 1,972,250 | 1,975,440 | 1,988,610 |
| 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 |
| Financial leverage ratio | 1.93 | 1.92 | 1.92 | 1.97 | 2.00 | 1.99 | 1.92 | 1.99 | 2.00 | 2.03 | 2.08 | 2.11 | 2.14 | 2.16 | 2.20 | 3.20 | 1.86 | 1.90 | 1.92 | 1.98 |
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 exhibited consistent levels over the past eight quarters, ranging from 1.92 to 2.00. This ratio indicates that the company's capital structure is primarily financed through debt, with each dollar of equity being supported by approximately 1.92 to 2.00 dollars of debt.
A ratio above 1 suggests that the company has more debt than equity in its capital structure. The slight fluctuations in the ratio from quarter to quarter may be attributed to changes in the company's borrowing levels or equity position.
Overall, ChampionX Corp. has maintained a relatively stable financial leverage position, although further analysis of the factors driving these ratios would be necessary to fully understand the company's leverage strategy and its potential implications for financial risk and profitability.
Peer comparison
Dec 31, 2023