Baker Hughes Co (BKR)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 2,646,000 1,883,000 3,252,000 3,445,000 2,147,000
Short-term investments US$ in thousands 975,000 748,000 1,033,000 1,502,000 24,000
Total current liabilities US$ in thousands 12,991,000 11,075,000 9,128,000 10,227,000 10,014,000
Cash ratio 0.28 0.24 0.47 0.48 0.22

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,646,000K + $975,000K) ÷ $12,991,000K
= 0.28

The cash ratio of Baker Hughes Co has been fluctuating over the past five years. The ratio indicates the proportion of cash and cash equivalents to its current liabilities, providing insight into the company's liquidity and ability to cover short-term obligations.

In 2023, the cash ratio decreased to 0.32 from 0.37 in 2022, indicating a slight decrease in the company's ability to cover its current liabilities with cash and cash equivalents. This may raise concerns about the company's liquidity position in the current year.

The cash ratio was at its highest in 2021 at 0.60, showing that Baker Hughes Co had a strong ability to meet its short-term obligations with its readily available cash resources. However, the ratio decreased in 2022 and 2023, suggesting a potential shift in the company's liquidity position.

Overall, despite the fluctuations, Baker Hughes Co has generally maintained a cash ratio above 0.4 in recent years, indicating a reasonable level of liquidity. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's short-term financial health and ability to meet its obligations.


Peer comparison

Dec 31, 2023