Baker Hughes Co (BKR)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		0.68	0.72	0.80	0.77	5.65
Number of days of payables	days	535.13	505.86	455.38	476.61	64.59

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.68
= 535.13

The number of days of payables for Baker Hughes Co has exhibited a notable increase over the last four years, with a significant jump from 64.59 days as of December 31, 2020, to 535.13 days as of December 31, 2024. This upward trend indicates that the company is taking longer to pay off its payables to suppliers and creditors.

The substantial increase in the number of days of payables may suggest potential liquidity challenges or shifts in the company's working capital management strategies. A longer number of days of payables can sometimes indicate a reluctance or inability to settle obligations promptly, which could have implications for supplier relationships and overall financial health.

It would be advisable for stakeholders and investors to further investigate the reasons behind this prolonged payment period and assess whether it is a strategic decision or a concerning financial constraint that could impact the company's operations and cash flow management.