Baker Hughes Co (BKR)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 23,664,000 | 23,581,000 | 23,368,000 | 22,915,000 |
| Total current assets | US$ in thousands | 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 | 15,222,000 | 14,769,000 | 14,985,000 | 14,912,000 |
| Total current liabilities | US$ in thousands | 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 | 10,014,000 | 9,332,000 | 9,341,000 | 9,052,000 |
| Working capital turnover | 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 | 4.54 | 4.34 | 4.14 | 3.91 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $24,941,000K ÷ ($16,301,000K – $12,991,000K)
= 7.54
Baker Hughes Co's working capital turnover has shown an increasing trend over the past eight quarters. The ratio has steadily improved from 3.69 in Q1 2022 to 7.71 in Q4 2023. This indicates that the company is generating revenue efficiently relative to its working capital.
A high working capital turnover ratio suggests that Baker Hughes is effectively using its current assets to support its sales activities. This may indicate a streamlined inventory management process, efficient accounts receivable collection, or effective supplier credit terms.
The company's ability to turn its working capital into revenue quickly is a positive sign of operational efficiency and financial health. It shows that Baker Hughes is effectively managing its short-term assets and liabilities to support its core business activities and drive revenue growth.
Peer comparison
Dec 31, 2023