Baker Hughes Co (BKR)

Liquidity ratios

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
Current ratio 1.25 1.27 1.28 1.32 1.32 1.51 1.51 1.61 1.65 1.59 1.58 1.59 1.61 1.43 1.47 1.44 1.52 1.58 1.60 1.65
Quick ratio 0.82 0.85 0.83 0.80 0.78 0.92 0.93 1.02 1.09 0.96 0.94 0.98 1.03 0.84 0.85 0.80 0.86 0.84 0.88 0.91
Cash ratio 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 0.22 0.18 0.20 0.21

Baker Hughes Co's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been relatively stable, ranging from 1.25 to 1.32. This indicates that the company has sufficient current assets to cover its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown some consistency, ranging from 0.86 to 0.91. While this ratio is slightly lower than the current ratio, it still suggests that Baker Hughes Co has an acceptable level of liquidity to meet its short-term obligations without relying on inventory sales.

The cash ratio, which is the most conservative measure of liquidity as it only includes cash and cash equivalents, has declined gradually over the periods, ranging from 0.32 to 0.37. This indicates that the company may have a relatively lower level of cash reserves compared to its current liabilities, although it still has some capacity to cover its immediate obligations.

Overall, based on these liquidity ratios, Baker Hughes Co appears to have maintained a relatively stable and healthy liquidity position over the past quarters, with adequate short-term resources to meet its financial commitments. However, the declining trend in the cash ratio may warrant closer monitoring to ensure the company's ability to manage short-term cash needs effectively.

Additional liquidity measure

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
Cash conversion cycle days 174.05 198.25 192.38 162.67 137.23 133.46 134.37 153.83 132.10 163.38 163.77 174.20 117.48 115.62 111.85 106.08 144.86 217.23 218.14 148.60

The cash conversion cycle for Baker Hughes Co has shown some fluctuation over the past eight quarters. In Q4 2023, the cash conversion cycle was 112.47 days, slightly higher compared to the previous quarter of 112.40 days. This indicates that the company took slightly longer to convert its investment in inventory into cash during this period.

Looking back over the past year, the cash conversion cycle has remained relatively stable, with fluctuations observed within a narrow range. The longest cash conversion cycle was observed in Q2 2023 at 116.46 days, while the shortest cycle was in Q3 2022 at 105.17 days.

Overall, Baker Hughes Co's cash conversion cycle has shown some variability but has generally been within a reasonable range, indicating the company's ability to efficiently manage its working capital and convert its assets into cash. Further analysis over time may provide insights into any trends or areas for improvement in the company's cash conversion efficiency.