Baker Hughes Co (BKR)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,098,000 | 2,959,000 | 2,974,000 | 3,126,000 | 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 |
| Payables | US$ in thousands | 4,542,000 | 4,431,000 | 4,649,000 | 4,595,000 | 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 |
| 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,098,000K ÷ $4,542,000K
= 0.68
The payables turnover ratio of Baker Hughes Co has shown a declining trend over the years, indicating a decrease in the efficiency of the company in managing its accounts payable. The ratio decreased from 5.41 in September 2020 to 0.68 in December 2024.
A decreasing payables turnover ratio could suggest that the company is taking longer to pay its suppliers or that there are inefficiencies in the accounts payable process. This could potentially strain relationships with suppliers and impact the company's cash flow management.
It is essential for Baker Hughes Co to closely monitor and improve its payables turnover ratio to ensure healthy supplier relationships, efficient working capital management, and overall financial stability.
Peer comparison
Dec 31, 2024