Baker Hughes Co (BKR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Receivables | US$ in thousands | 7,075,000 | 5,958,000 | 5,651,000 | 5,622,000 | 6,416,000 |
| Receivables turnover | 3.58 | 3.43 | 3.58 | 3.57 | 3.66 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $25,330,000K ÷ $7,075,000K
= 3.58
The receivables turnover ratio for Baker Hughes Co has been relatively stable over the past five years, ranging from 3.55 to 3.72. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers during a specific period. A higher receivables turnover ratio suggests that the company is collecting its accounts receivable more quickly.
The slight fluctuations in the receivables turnover ratio may reflect changes in the company's credit policies, customer payment behaviors, or overall sales volumes. Despite these fluctuations, the ratio has generally remained within a close range, indicating a consistent ability to manage and collect receivables effectively.
Overall, Baker Hughes Co's receivables turnover ratio suggests that the company is efficiently managing its accounts receivable and converting credit sales into cash. However, it is essential for the company to continue monitoring and improving its receivables management practices to ensure timely collections and maintain a healthy cash flow.
Peer comparison
Dec 31, 2023