Baker Hughes Co (BKR)
Total asset 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 |
| Total assets | US$ in thousands | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 | 53,369,000 |
| Total asset turnover | 0.69 | 0.60 | 0.57 | 0.53 | 0.44 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $25,330,000K ÷ $36,945,000K
= 0.69
The total asset turnover of Baker Hughes Co has been steadily improving over the past five years, indicating an increasing efficiency in generating revenue from its total assets. The ratio increased from 0.45 in 2019 to 0.69 in 2023. This suggests that the company is utilizing its assets more efficiently to generate sales.
A total asset turnover ratio of less than 1 means that the company is generating less revenue per dollar of assets. However, the increasing trend of the ratio indicates that Baker Hughes Co is improving its asset utilization over time. This can be a positive signal for investors as it demonstrates increased efficiency in the company's operations and potential for improved financial performance in the future.
Peer comparison
Dec 31, 2023