Baker Hughes Co (BKR)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 23,664,000 | 23,581,000 | 23,368,000 | 22,915,000 |
| Property, plant and equipment | US$ in thousands | 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 | 6,240,000 | 6,141,000 | 6,130,000 | 6,218,000 |
| Fixed asset turnover | 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 | 3.79 | 3.84 | 3.81 | 3.69 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $24,941,000K ÷ $4,893,000K
= 5.10
The fixed asset turnover ratio for Baker Hughes Co has exhibited a generally increasing trend over the past eight quarters, indicating improvements in the company's efficiency in generating revenue from its fixed assets.
In Q1 2022, the ratio stood at 4.28 and showed a steady upward trajectory, reaching its peak in Q4 2023 at 5.21. This signifies that for every dollar invested in fixed assets, the company generated $5.21 in revenue by the end of Q4 2023.
The consistent upward movement in the fixed asset turnover ratio suggests that Baker Hughes Co has been able to utilize its fixed assets more effectively to drive revenue generation over the analyzed period. This may be attributed to efficient management of fixed assets, increased operational productivity, and possibly strategic investments in improving asset utilization efficiency.
Overall, the trend in the fixed asset turnover ratio reflects positively on Baker Hughes Co's ability to optimize its fixed asset base to generate revenue and indicates a strong operational performance in recent quarters.
Peer comparison
Dec 31, 2023