Baker Hughes Co (BKR)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 2,704,000 | 2,604,000 | 2,567,000 | 7,255,000 |
| Payables | US$ in thousands | 4,471,000 | 4,123,000 | 4,154,000 | 4,263,000 | 4,298,000 | 3,800,000 | 3,764,000 | 3,755,000 | 3,745,000 | 3,514,000 | 3,593,000 | 3,468,000 | 3,532,000 | 3,482,000 | 3,628,000 | 3,991,000 | 4,268,000 | 3,870,000 | 3,966,000 | 3,918,000 |
| Payables turnover | 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 | 0.63 | 0.67 | 0.65 | 1.85 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,225,000K ÷ $4,471,000K
= 0.72
The payables turnover ratio for Baker Hughes Co fluctuated over the past eight quarters, ranging from 3.90 to 4.71. The ratio measures the efficiency with which the company manages its accounts payable by calculating how many times a company pays off its average accounts payable balance during a period. A higher ratio indicates quicker payments to suppliers.
In the most recent quarter, Q4 2023, Baker Hughes Co's payables turnover was 4.53, which indicates that the company paid off its accounts payable approximately 4.53 times during that period. This suggests efficient management of accounts payable, with a consistent trend of maintaining a turnover rate above 4 in the past few quarters.
Overall, the company's payables turnover has shown stability and efficiency in managing its payable obligations, maintaining a relatively high turnover ratio compared to the previous quarters. Further analysis can be conducted to understand the underlying reasons for the fluctuations and identify any potential areas for improvement in the management of accounts payable.
Peer comparison
Dec 31, 2023