Baker Hughes Co (BKR)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		0.72	0.80	0.77	5.65	0.83
Number of days of payables	days	505.86	455.38	476.61	64.59	440.19

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.72
= 505.86

The number of days of payables for Baker Hughes Co has fluctuated over the past five years. It was 80.57 days as of December 31, 2023, which was a decrease from 93.62 days in the previous year. This indicates that the company took fewer days to pay its suppliers in 2023 compared to 2022.

Compared to the data from December 31, 2021, when the number of days of payables was 83.08 days, there was a slight improvement in efficiency in managing payables in 2023. The trend in 2023 also shows an increase from 73.64 days in 2020 and a decrease from 80.28 days in 2019.

Overall, a lower number of days of payables suggests that Baker Hughes Co is able to settle its outstanding payables more quickly, which may reflect positively on its liquidity and cash flow management. It indicates that the company is managing its working capital effectively by efficiently using its cash resources to meet its short-term obligations.