Baker Hughes Co (BKR)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 0.63 0.63 0.75 0.72 4.51
DOH days 583.67 576.35 486.00 506.39 80.85

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.63
= 583.67

The days of inventory on hand (DOH) for Baker Hughes Co have experienced significant fluctuations over the past five years.

As of December 31, 2020, the DOH stood at 80.85 days, indicating that the company held a moderate level of inventory relative to its sales. However, this metric sharply increased to 506.39 days by December 31, 2021, suggesting that Baker Hughes Co may have been facing challenges in managing its inventory efficiently.

Subsequent years saw a slight decrease in the DOH, reaching 486.00 days by December 31, 2022. Despite this improvement, the metric spiked again to 576.35 days by the end of 2023 and further to 583.67 days by December 31, 2024, indicating a prolonged period of inventory being held by the company.

These fluctuations in the days of inventory on hand highlight potential issues in inventory management efficiency for Baker Hughes Co. It is crucial for the company to carefully monitor and optimize its inventory levels to ensure better cash flow management and operational performance.