Baker Hughes Co (BKR)

Number of days of payables

		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
Payables turnover		0.68	0.67	0.64	0.68	0.72	0.75	0.80	0.81	0.79	0.88	0.83	0.76	0.76	0.93	0.96	0.98	5.59	5.41	5.18	4.74
Number of days of payables	days	535.13	546.57	570.57	536.52	506.02	486.71	459.04	448.54	459.51	413.29	438.65	478.72	480.13	393.08	379.47	371.75	65.26	67.52	70.49	77.03

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 shown some fluctuations over the years, starting at around 70 days in mid-2020 and peaking at over 500 days by the end of 2024. This metric indicates the average number of days it takes for the company to pay its suppliers and is a measure of how efficiently the company manages its accounts payable.

A decrease in the number of days of payables could suggest that the company is paying its suppliers more quickly, which may strain its cash flow but could also indicate good relationships with suppliers. On the other hand, an increase in the number of days of payables could imply that the company is taking longer to pay its suppliers, potentially preserving cash but risking strained relationships with suppliers.

In the case of Baker Hughes Co, the trend shows an initial decrease in the number of days of payables up to 2021 before a significant and somewhat erratic increase until 2024. This may indicate changing payment policies, cash flow management strategies, or shifts in supplier relationships. It would be important for stakeholders to monitor this metric closely to assess the impact on the company's financial health and operational efficiency.