Baker Hughes Co (BKR)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 3.69 | 3.82 | 3.70 | 3.63 | |
| DSO | days | 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 | 98.96 | 95.43 | 98.56 | 100.65 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.53
= 103.54
To analyze Baker Hughes Co's Days of Sales Outstanding (DSO) trend, we can see that the DSO metric measures how long it takes for the company to collect payments from its customers after making a sale. A lower DSO indicates faster cash collections and better liquidity management.
From the data provided, we observe that the DSO for Baker Hughes Co has fluctuated over the past eight quarters. In Q4 2023, the DSO was at 101.25 days, which is higher compared to the previous quarter where it was at 96.61 days.
Looking at the trend over the past year, while there have been fluctuations in DSO, the metric has generally been around the 100-day mark. This suggests that Baker Hughes Co takes an average of 100 days to collect payments from its customers.
It is important for Baker Hughes Co to monitor its DSO closely as a high DSO can indicate potential issues with accounts receivable management and potential cash flow challenges. The company may need to review its credit policies, collection procedures, and customer payment terms to improve cash inflows and overall liquidity.
In conclusion, the DSO trend for Baker Hughes Co has shown some fluctuations but has generally remained around the 100-day mark. The company should continue to focus on efficient accounts receivable management to optimize cash flows and enhance its overall financial performance.
Peer comparison
Dec 31, 2023