Baker Hughes Co (BKR)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,225,000 | 3,092,000 | 3,303,000 | 3,469,000 | 3,414,000 | 3,356,000 | 3,132,000 | 2,863,000 | 2,847,000 | 3,263,000 | 3,456,000 | 3,405,000 | 19,754,000 | 18,823,000 | 18,785,000 | 18,912,000 | 2,704,000 | 2,604,000 | 2,567,000 | 7,255,000 |
| Inventory | US$ in thousands | 5,094,000 | 4,964,000 | 4,957,000 | 4,786,000 | 4,587,000 | 4,111,000 | 4,052,000 | 4,151,000 | 3,979,000 | 4,110,000 | 4,212,000 | 4,181,000 | 4,421,000 | 4,469,000 | 4,616,000 | 4,534,000 | 4,608,000 | 4,739,000 | 4,807,000 | 4,871,000 |
| Inventory turnover | 0.63 | 0.62 | 0.67 | 0.72 | 0.74 | 0.82 | 0.77 | 0.69 | 0.72 | 0.79 | 0.82 | 0.81 | 4.47 | 4.21 | 4.07 | 4.17 | 0.59 | 0.55 | 0.53 | 1.49 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,225,000K ÷ $5,094,000K
= 0.63
Baker Hughes Co's inventory turnover has shown a fluctuating trend over the past eight quarters. The inventory turnover ratio, calculated as Cost of Goods Sold divided by Average Inventory, indicates how efficiently the company is managing its inventory.
In Q4 2023, Baker Hughes Co's inventory turnover stood at 3.98 times, a slight increase from the previous quarter's ratio of 3.92. This suggests that the company was able to sell and replace its inventory nearly 4 times during the quarter. However, compared to the same period last year, the Q4 2023 ratio was lower.
Looking at the broader trend, the inventory turnover ratio has been relatively stable, hovering around the 3.65 to 4.02 range over the past two years. This indicates that Baker Hughes Co has been maintaining a reasonable level of efficiency in managing its inventory turnover.
Overall, while there have been some fluctuations, Baker Hughes Co's inventory turnover ratios suggest that the company has been effectively balancing its inventory levels to meet demand and optimize its operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023