ChampionX Corporation (CHX)

Solvency ratios

	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
Debt-to-assets ratio	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	0.29	0.30	0.31	0.32
Debt-to-capital ratio	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	0.35	0.36	0.37	0.39
Debt-to-equity ratio	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	0.54	0.57	0.60	0.64
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

The solvency ratios of ChampionX Corp. show a relatively stable trend over the past eight quarters.

The debt-to-assets ratio has remained consistently low, hovering around 0.18 to 0.19, indicating that the company's assets are financed primarily through equity rather than debt.

Similarly, the debt-to-capital ratio has been relatively steady at around 0.26 to 0.29, suggesting that the company relies moderately on debt to finance its operations compared to its total capital structure.

The debt-to-equity ratio has shown a slight decrease from 0.40 in Q1 2022 to 0.35 in Q3 2023, indicating a decrease in the proportion of debt in relation to equity over time.

The financial leverage ratio has fluctuated within a narrow range of 1.92 to 2.00, implying that ChampionX Corp. has maintained a consistent level of financial leverage to amplify returns to its equity shareholders.

Overall, based on these solvency ratios, ChampionX Corp. appears to have a stable financial position with a sound balance between debt and equity in its capital structure.

Coverage ratios

	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
Interest coverage	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	20.29	16.02	9.55	7.71

ChampionX Corp.'s interest coverage ratio has shown a positive trend over the past eight quarters, reflecting the company's improving ability to meet its interest payment obligations from operating income. The interest coverage ratio has consistently increased from 4.29 in Q1 2022 to 9.28 in Q4 2023, indicating a significant improvement in the company's ability to cover interest expenses.

This upward trend suggests that ChampionX Corp.'s profitability and cash flow generation have strengthened, allowing the company to comfortably meet its interest payments. A higher interest coverage ratio provides greater assurance to creditors and investors regarding the company's financial stability and ability to manage its debt obligations.

The consistent improvement in the interest coverage ratio indicates that ChampionX Corp. has been effectively managing its debt levels and generating sufficient earnings to cover its financial obligations. This positive trend reflects well on the company's financial health and indicates a lower risk of default on its debt.