Baker Hughes Co (BKR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,631,000 | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 |
| Property, plant and equipment | US$ in thousands | 5,127,000 | 4,893,000 | 4,538,000 | 4,877,000 | 5,358,000 |
| Fixed asset turnover | 5.39 | 5.18 | 4.51 | 4.14 | 3.75 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $27,631,000K ÷ $5,127,000K
= 5.39
The fixed asset turnover of Baker Hughes Co has shown a consistent upward trend from 3.75 in December 31, 2020, to 5.39 in December 31, 2024. This indicates that the company is generating more revenue per dollar invested in fixed assets over the years, reflecting improved operational efficiency and asset utilization. The increasing fixed asset turnover ratio suggests that Baker Hughes Co is effectively leveraging its fixed assets to generate sales, which is a positive indicator of the company's management of its assets. It implies that the company is efficiently utilizing its fixed assets to drive revenue growth and maximize profitability. Overall, the trend in the fixed asset turnover ratio for Baker Hughes Co portrays a positive picture of the company's operational performance and ability to generate value from its fixed assets.
Peer comparison
Dec 31, 2024