Baker Hughes Co (BKR)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 0.59 | 0.55 | 0.53 | 1.49 | |
| DOH | days | 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 | 622.01 | 664.26 | 683.50 | 245.06 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.63
= 576.53
Days of Inventory on Hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A lower DOH indicates the company is selling inventory quickly, while a higher DOH suggests slower inventory turnover.
Analyzing the trend in Baker Hughes Co's DOH over the past eight quarters, we observe fluctuations in the metric. The DOH ranged from a low of 90.71 days in Q2 2022 to a high of 100.06 days in Q1 2023.
The trend indicates that the company's inventory management efficiency has been somewhat inconsistent. A rising DOH could signal excess inventory levels or difficulties in selling products, leading to potential liquidity challenges or increased carrying costs.
Further investigation into the drivers behind these fluctuations, such as changes in production levels, demand patterns, or supply chain disruptions, would provide a more in-depth understanding of the company's inventory management practices.
Investors and stakeholders should closely monitor Baker Hughes Co's DOH and investigate any significant deviations from historical averages to assess potential risks and opportunities related to inventory management.
Peer comparison
Dec 31, 2023