Baker Hughes Co (BKR)

Days of inventory on hand (DOH)

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
Inventory turnover 0.63 0.56 0.58 0.59 0.63 0.62 0.67 0.72 0.74 0.82 0.77 0.69 0.72 0.79 0.82 0.81 4.47 4.21 4.07 4.17
DOH days 583.67 648.09 629.12 623.40 576.53 585.98 547.78 503.57 490.41 447.11 472.22 529.21 510.13 459.75 444.84 448.18 81.69 86.66 89.69 87.51

December 31, 2024 calculation

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

Based on the provided data, Baker Hughes Co's Days of Inventory on Hand (DOH) has fluctuated over the periods analyzed.

In March 2020, the company held inventory for an average of 87.51 days before selling it, which increased slightly to 89.69 days by June 2020. However, the DOH decreased to 81.69 days by December 2020, indicating more efficient inventory management.

A significant jump in the DOH was observed in the first quarter of 2021, reaching 448.18 days, and this trend continued in subsequent quarters, with DOH peaking at 648.09 days in September 2024. Such a sharp increase in inventory holding period could indicate overstocking or potential issues with demand forecasting during these periods.

It is worth noting that the DOH metric exceeded 500 days for several quarters, indicating the company may have been struggling to convert inventory into sales efficiently. This could tie up working capital and lead to higher carrying costs, potentially impacting the company's profitability and cash flow.

Overall, the trend of increasing DOH over the analyzed periods suggests that Baker Hughes Co may need to revisit its inventory management strategies to optimize its working capital and improve operational efficiency.