Baker Hughes Co (BKR)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 27,631,000 | 26,809,000 | 26,547,000 | 25,693,000 | 24,941,000 | 23,990,000 | 22,603,000 | 21,333,000 | 20,452,000 | 20,453,000 | 20,175,000 | 20,265,000 | 20,202,000 | 20,101,000 | 20,058,000 | 19,648,000 | 20,306,000 | 21,363,000 | 22,203,000 | 23,474,000 |
| Total current assets | US$ in thousands | 17,211,000 | 16,568,000 | 15,930,000 | 16,420,000 | 16,301,000 | 16,161,000 | 15,806,000 | 15,386,000 | 14,592,000 | 14,335,000 | 14,199,000 | 14,707,000 | 15,065,000 | 14,887,000 | 15,512,000 | 15,786,000 | 16,455,000 | 15,208,000 | 15,502,000 | 14,653,000 |
| Total current liabilities | US$ in thousands | 12,991,000 | 12,790,000 | 12,586,000 | 13,179,000 | 12,991,000 | 12,681,000 | 12,311,000 | 11,618,000 | 11,075,000 | 9,465,000 | 9,375,000 | 9,142,000 | 9,128,000 | 9,354,000 | 9,805,000 | 9,958,000 | 10,227,000 | 10,639,000 | 10,567,000 | 10,141,000 |
| Working capital turnover | 6.55 | 7.10 | 7.94 | 7.93 | 7.54 | 6.89 | 6.47 | 5.66 | 5.82 | 4.20 | 4.18 | 3.64 | 3.40 | 3.63 | 3.51 | 3.37 | 3.26 | 4.68 | 4.50 | 5.20 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,631,000K ÷ ($17,211,000K – $12,991,000K)
= 6.55
The working capital turnover of Baker Hughes Co has shown fluctuations over the past few years, ranging from a low of 3.26 in December 2020 to a high of 7.94 in June 2024. The working capital turnover measures how efficiently the company is using its working capital to generate revenues. A higher turnover ratio indicates that the company is able to generate more revenue per dollar of working capital.
From the data provided, we can observe an overall increasing trend in the working capital turnover from 2020 to 2024. The ratio started at 3.26 in December 2020 and steadily increased to 6.55 by December 2024. This indicates an improvement in the efficiency of utilizing working capital to generate revenue over this period.
It is important to note that a high working capital turnover ratio may suggest that the company is managing its working capital effectively but could also imply aggressive management of working capital, which may lead to liquidity issues. On the other hand, a low turnover ratio may indicate inefficiency in utilizing working capital which could impact the company's profitability.
Overall, the increasing trend in Baker Hughes Co's working capital turnover from 2020 to 2024 indicates an improvement in the company's efficiency in utilizing working capital to generate revenue.
Peer comparison
Dec 31, 2024