Baker Hughes Co (BKR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 3,364,000 2,664,000 2,284,000 2,717,000 2,646,000 3,201,000 2,805,000 1,866,000 1,883,000 2,240,000 2,264,000 2,572,000 3,252,000 3,235,000 3,274,000 3,776,000 3,445,000 3,258,000 3,297,000 2,006,000
Short-term investments US$ in thousands 1,281,000 1,148,000 1,039,000 1,014,000 975,000 1,052,000 1,044,000 1,094,000 748,000 848,000 912,000 1,042,000 1,033,000 403,000 544,000 714,000 1,502,000 2,000 2,000 2,000
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
Cash ratio 0.36 0.30 0.26 0.28 0.28 0.34 0.31 0.25 0.24 0.33 0.34 0.40 0.47 0.39 0.39 0.45 0.48 0.31 0.31 0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,364,000K + $1,281,000K) ÷ $12,991,000K
= 0.36

The cash ratio of Baker Hughes Co has shown fluctuations over the past five years. The ratio measures the company's ability to cover its short-term obligations with cash and cash equivalents.

From March 31, 2020, to June 30, 2022, the cash ratio ranged between 0.20 and 0.40, indicating that the company had limited cash on hand relative to its current liabilities.

There was a notable increase in the ratio from March 31, 2020, to December 31, 2021, reaching 0.48, suggesting improved liquidity position during this period.

However, the ratio began to decline from March 31, 2022, to December 31, 2024, settling at 0.36. This decrease may indicate that the company is utilizing its cash reserves for operational or investment activities, potentially impacting its ability to meet short-term obligations solely through cash.

Overall, the trend in Baker Hughes Co's cash ratio reflects varying levels of liquidity over the period, which should be further analyzed in conjunction with other financial metrics to assess the company's financial health comprehensively.