Baker Hughes Co (BKR)

Days of sales outstanding (DSO)

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
Receivables turnover 3.88 3.87 3.76 3.74 3.53 3.69 3.52 3.39 3.43 3.66 3.62 3.53 3.57 3.77 3.71 3.73 3.61 3.78 3.94 3.82
DSO days 94.08 94.21 96.95 97.64 103.54 98.97 103.64 107.64 106.33 99.63 100.81 103.35 102.10 96.71 98.39 97.77 101.06 96.48 92.65 95.60

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect payment after making a sale. Analyzing Baker Hughes Co's DSO over the period from March 31, 2020, to December 31, 2024, reveals some insights into the company's efficiency in collecting receivables.

The trend in Baker Hughes Co's DSO shows some fluctuations over the years. The DSO was relatively stable around the 90 to 100 days range from 2020 to 2022, indicating a consistent collection period. However, there was a noticeable increase in DSO towards the end of 2022 and into 2023, reaching a peak of 107.64 days, which might suggest challenges in collecting payments or changes in customer payment behaviors during that time.

Subsequently, Baker Hughes Co managed to bring down the DSO to 94.21 days by September 30, 2024, showcasing an improvement in its receivables collection efficiency. The decreasing trend towards the end of the period indicates efforts to streamline collections processes or better management of credit terms.

Overall, while the DSO ratio fluctuated over the years, Baker Hughes Co seems to have successfully worked towards reducing the average collection period by the end of the period analyzed. Monitoring DSO is crucial for understanding the effectiveness of a company's credit and collection policies, as well as its overall financial health and liquidity.