Baker Hughes Co (BKR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,631,000 | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 |
| Receivables | US$ in thousands | 7,122,000 | 7,075,000 | 5,958,000 | 5,651,000 | 5,622,000 |
| Receivables turnover | 3.88 | 3.58 | 3.43 | 3.58 | 3.57 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $27,631,000K ÷ $7,122,000K
= 3.88
The receivables turnover ratio for Baker Hughes Co has shown a steady trend over the last five years. In 2020, the ratio was 3.57, indicating that the company collected its receivables approximately 3.57 times during the year. This ratio improved slightly in 2021 to 3.58, suggesting a slightly more efficient collection of receivables.
However, in 2022, there was a slight decline in the receivables turnover ratio to 3.43, which may indicate a slower collection of receivables during that year. The ratio then rebounded in 2023 to 3.58, reaching the same level as in 2021.
The most significant improvement in receivables turnover occurred in 2024, with a ratio of 3.88, reflecting a notable increase in the efficiency of collecting receivables compared to the previous years.
Overall, the company's ability to collect its receivables has been consistent, with a slight fluctuation in the ratio over the years. The increasing trend in the receivables turnover ratio is a positive indicator of the company's effectiveness in managing its accounts receivable and converting them into cash.
Peer comparison
Dec 31, 2024