Baker Hughes Co (BKR)
Total asset 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 |
| Total assets | US$ in thousands | 38,363,000 | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 |
| Total asset turnover | 0.72 | 0.69 | 0.60 | 0.57 | 0.53 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $27,631,000K ÷ $38,363,000K
= 0.72
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its investments in assets. Baker Hughes Co's total asset turnover has shown an increasing trend over the past five years, starting at 0.53 in December 2020 and reaching 0.72 by December 2024. This indicates that the company has been able to generate more revenue relative to its total assets over this period.
The improvement in total asset turnover suggests that Baker Hughes Co is utilizing its assets more effectively to generate sales. A higher total asset turnover ratio generally indicates that the company is operating efficiently and effectively managing its assets to generate revenue. This could be attributed to better asset utilization, increased sales, or improved operational efficiency.
Overall, the upward trend in Baker Hughes Co's total asset turnover over the past five years reflects positively on the company's operational performance and efficiency in generating revenue from its asset base. It implies that the company is utilizing its assets more effectively, which could contribute to improved profitability and overall financial performance.
Peer comparison
Dec 31, 2024