Baker Hughes Co (BKR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 16,301,000 | 14,592,000 | 15,065,000 | 16,455,000 | 15,222,000 |
| Total current liabilities | US$ in thousands | 12,991,000 | 11,075,000 | 9,128,000 | 10,227,000 | 10,014,000 |
| Current ratio | 1.25 | 1.32 | 1.65 | 1.61 | 1.52 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $16,301,000K ÷ $12,991,000K
= 1.25
The current ratio of Baker Hughes Co has shown some fluctuations over the past five years. The company's current assets have generally been able to cover its current liabilities, indicating a healthy level of liquidity.
In 2023, the current ratio decreased to 1.25 from 1.32 in the prior year. This decrease may suggest a slight weakening in the company's ability to meet its short-term obligations with its current assets. It is important to monitor this trend to ensure that Baker Hughes Co maintains a strong liquidity position.
Comparing the current ratio to previous years, the ratio was highest in 2021 at 1.65, indicating that the company had a greater ability to cover its short-term liabilities with its current assets that year. The current ratio was also healthy in 2020 and 2019 at 1.61 and 1.52 respectively, showing that Baker Hughes Co has historically maintained a good level of liquidity.
Overall, although the current ratio for 2023 has decreased, Baker Hughes Co has generally maintained a satisfactory liquidity position over the past five years. Monitoring this ratio and understanding the reasons behind any fluctuations will be important for assessing the company's short-term financial health and ability to meet its obligations.
Peer comparison
Dec 31, 2023