Baker Hughes Co (BKR)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,098,000 | 2,959,000 | 2,974,000 | 3,126,000 | 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 |
| Inventory | US$ in thousands | 4,954,000 | 5,254,000 | 5,126,000 | 5,339,000 | 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 |
| Inventory turnover | 0.63 | 0.56 | 0.58 | 0.59 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,098,000K ÷ $4,954,000K
= 0.63
The inventory turnover ratio for Baker Hughes Co has been on a decreasing trend over the past few years, indicating a declining efficiency in managing its inventory. From a high of 4.47 in December 2020, the ratio has decreased to 0.63 by December 2024. This may suggest that the company is experiencing challenges in selling its inventory or that it is holding too much inventory relative to its sales.
A lower inventory turnover ratio could potentially lead to increased carrying costs, obsolescence, and liquidity issues as cash becomes tied up in unsold inventory. It may also signal inefficiencies in production and inventory management processes, as well as potential pricing pressures or shifts in demand dynamics.
Further analysis and comparison with industry peers and historical performance can provide more insights into the reasons behind the declining inventory turnover and help identify areas for improvement in inventory management practices within Baker Hughes Co.
Peer comparison
Dec 31, 2024
Dec 31, 2024