Baker Hughes Co (BKR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,098,000 | 3,226,000 | 3,445,000 | 2,868,000 | 19,958,000 |
| Payables | US$ in thousands | 4,542,000 | 4,471,000 | 4,298,000 | 3,745,000 | 3,532,000 |
| Payables turnover | 0.68 | 0.72 | 0.80 | 0.77 | 5.65 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,098,000K ÷ $4,542,000K
= 0.68
The payables turnover of Baker Hughes Co has shown a declining trend over the years, decreasing from 5.65 in December 31, 2020, to 0.68 in December 31, 2024. This indicates that the company is taking longer to pay its suppliers, which could be a potential concern as it may strain supplier relationships. A lower payables turnover ratio may also suggest inefficiencies in managing the company's accounts payable, potentially impacting its liquidity and cash flow. Further investigation into the factors contributing to this trend is recommended to assess the overall financial health and efficiency of Baker Hughes Co.
Peer comparison
Dec 31, 2024