Baker Hughes Co (BKR)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 3.88 3.58 3.43 3.58 3.57
DSO days 94.08 101.95 106.33 102.09 102.15

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.88
= 94.08

The days of sales outstanding (DSO) for Baker Hughes Co have shown varying trends over the past five years. As of December 31, 2020, the DSO was recorded at 102.15 days, remaining relatively stable by December 31, 2021, at 102.09 days. However, there was a notable increase by December 31, 2022, with the DSO rising to 106.33 days.

Fortunately, by the end of December 31, 2023, the DSO decreased to 101.95 days, indicating a potential improvement in the collection of receivables. This positive trend continued into December 31, 2024, as the DSO further decreased to 94.08 days, which suggests a more efficient management of accounts receivable.

Overall, the fluctuation in DSO over the years may signify changes in the company's credit policies, customer payment behaviors, or overall efficiency in collecting outstanding receivables. It is important for Baker Hughes Co to closely monitor and manage its DSO to ensure optimal cash flow and financial performance.