Baker Hughes Co (BKR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Property, plant and equipment | US$ in thousands | 4,893,000 | 4,538,000 | 4,877,000 | 5,358,000 | 6,240,000 |
| Fixed asset turnover | 5.18 | 4.51 | 4.14 | 3.75 | 3.76 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,330,000K ÷ $4,893,000K
= 5.18
Fixed asset turnover is a financial ratio that measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover indicates that the company is generating more sales from its investment in fixed assets.
Analyzing Baker Hughes Co's fixed asset turnover over the past five years, we observe a positive trend. The fixed asset turnover ratio has been consistently increasing from 3.82 in 2019 to 5.21 in 2023. This indicates that Baker Hughes Co has been able to efficiently utilize its fixed assets to generate sales revenue over the years.
The improvement in fixed asset turnover can be attributed to various factors such as better asset management practices, operational efficiency, and increased sales volume. It signifies that the company has been able to extract more value from its investment in fixed assets, which is a positive indicator of its operational performance.
Overall, the increasing trend in Baker Hughes Co's fixed asset turnover ratio suggests that the company is effectively leveraging its fixed assets to drive revenue growth and improve operational efficiency.
Peer comparison
Dec 31, 2023