ChampionX Corporation (CHX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.20 | 0.19 | 0.20 | 0.21 | 0.24 | 0.26 | 0.26 | 0.29 | 0.30 | 0.00 |
| Debt-to-capital ratio | 0.24 | 0.25 | 0.25 | 0.26 | 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 |
| Debt-to-equity ratio | 0.32 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | 0.34 | 0.35 | 0.37 | 0.38 | 0.38 | 0.39 | 0.39 | 0.43 | 0.50 | 0.55 | 0.56 | 0.62 | 0.67 | 0.00 |
| Financial leverage ratio | 1.88 | 1.86 | 1.88 | 1.94 | 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 |
ChampionX Corporation's solvency ratios indicate a stable financial position over the analyzed periods.
1. The Debt-to-assets ratio has shown a steady decline from 0.30 in June 2020 to 0.17 in December 2024, indicating that the company's debt level in relation to its total assets has decreased consistently.
2. The Debt-to-capital ratio has also exhibited a consistent downward trend from 0.40 in June 2020 to 0.24 in December 2024, reflecting a reduction in the proportion of debt financing compared to the total capital employed by the company.
3. The Debt-to-equity ratio has decreased steadily from 0.67 in June 2020 to 0.32 in December 2024, showing a declining reliance on debt relative to equity for financing the company's operations.
4. The Financial leverage ratio has decreased gradually from 3.20 in March 2020 to 1.88 in December 2024, indicating a general improvement in the company's ability to meet its financial obligations and a reduction in financial risk.
Overall, the decreasing trends in these solvency ratios suggest that ChampionX Corporation has effectively managed its debt levels and improved its financial stability over the analyzed period, enhancing its overall solvency position.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.92 | 5.88 | 6.21 | 6.77 | 6.86 | 6.81 | 4.00 | 3.21 | 1.79 | 0.43 | 2.28 | 1.31 | 0.49 | 0.17 | -0.78 | -3.19 | -16.43 | -19.79 | -32.87 | -51.84 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations.
For ChampionX Corporation, the interest coverage ratio has shown a declining trend from negative values in 2020 to positive values in 2024. This indicates an improvement in the company's ability to cover its interest expenses over the years.
In March 2024, the interest coverage ratio stood at 6.77, which means ChampionX Corporation generated 6.77 times more earnings than needed to cover its interest payments. This suggests a healthy financial position and a lower risk of default on debt obligations.
Overall, the increasing trend in the interest coverage ratio for ChampionX Corporation reflects a strengthening financial performance and a positive outlook for the company's ability to service its debt in the future.