Baker Hughes Co (BKR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 17,211,000 | 16,301,000 | 14,592,000 | 15,065,000 | 16,455,000 |
| Total current liabilities | US$ in thousands | 12,991,000 | 12,991,000 | 11,075,000 | 9,128,000 | 10,227,000 |
| Current ratio | 1.32 | 1.25 | 1.32 | 1.65 | 1.61 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $17,211,000K ÷ $12,991,000K
= 1.32
The current ratio of Baker Hughes Co has shown a stable trend over the past few years, with values ranging from 1.25 to 1.65. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, providing a buffer to cover its short-term debts.
In this case, Baker Hughes Co has maintained a current ratio above 1, which suggests a healthy liquidity position. The slight fluctuations in the ratio may indicate changes in the company's current assets and liabilities over time. A higher current ratio generally implies a stronger liquidity position and lower risk of financial distress in the short term.
Overall, based on the current ratio values provided, Baker Hughes Co appears to have a solid ability to cover its short-term obligations with its current assets, reflecting a sound financial position in terms of liquidity management. However, it is important to consider other financial metrics and factors in conjunction with the current ratio to gain a more comprehensive understanding of the company's overall financial health.
Peer comparison
Dec 31, 2024