Baker Hughes Co (BKR)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 27,631,000 | 26,809,000 | 26,547,000 | 25,693,000 | 24,941,000 | 23,990,000 | 22,603,000 | 21,333,000 | 20,452,000 | 20,453,000 | 20,175,000 | 20,265,000 | 20,202,000 | 20,101,000 | 20,058,000 | 19,648,000 | 20,306,000 | 21,363,000 | 22,203,000 | 23,474,000 |
| Property, plant and equipment | US$ in thousands | 5,127,000 | 5,150,000 | 4,951,000 | 4,931,000 | 4,893,000 | 4,768,000 | 4,723,000 | 4,513,000 | 4,538,000 | 4,381,000 | 4,531,000 | 4,804,000 | 4,877,000 | 4,982,000 | 5,086,000 | 5,163,000 | 5,358,000 | 5,536,000 | 5,710,000 | 5,997,000 |
| Fixed asset turnover | 5.39 | 5.21 | 5.36 | 5.21 | 5.10 | 5.03 | 4.79 | 4.73 | 4.51 | 4.67 | 4.45 | 4.22 | 4.14 | 4.03 | 3.94 | 3.81 | 3.79 | 3.86 | 3.89 | 3.91 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $27,631,000K ÷ $5,127,000K
= 5.39
Fixed asset turnover is a financial ratio that indicates how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio is generally considered favorable as it suggests that the company is generating more sales relative to its investment in fixed assets.
For Baker Hughes Co, the fixed asset turnover has been gradually increasing over the reported periods. From a value of 3.91 as of March 31, 2020, the ratio has steadily risen to 5.39 as of December 31, 2024. This indicates that the company is becoming more efficient in generating sales revenue from its fixed assets.
The trend of increasing fixed asset turnover could signify improvements in operational efficiency, better asset utilization, or effective management of fixed assets by Baker Hughes Co. It may also indicate that the company is expanding its revenue base without significantly increasing its investment in fixed assets.
Overall, the rising trend in fixed asset turnover for Baker Hughes Co reflects positively on its operational efficiency and ability to generate sales relative to its investment in fixed assets.
Peer comparison
Dec 31, 2024