Baker Hughes Co (BKR)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 3,364,000 2,646,000 1,883,000 3,252,000 3,445,000
Short-term investments US$ in thousands 1,281,000 975,000 748,000 1,033,000 1,502,000
Receivables US$ in thousands 7,122,000 7,075,000 5,958,000 5,651,000 5,622,000
Total current liabilities US$ in thousands 12,991,000 12,991,000 11,075,000 9,128,000 10,227,000
Quick ratio 0.91 0.82 0.78 1.09 1.03

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,364,000K + $1,281,000K + $7,122,000K) ÷ $12,991,000K
= 0.91

The quick ratio of Baker Hughes Co has shown some fluctuations over the past five years. In December 2020, the quick ratio was 1.03, indicating that the company had just enough liquid assets to cover its current liabilities. By December 2021, the quick ratio improved slightly to 1.09, suggesting a stronger ability to meet short-term obligations.

However, the quick ratio dipped in December 2022 to 0.78, signaling a potential liquidity strain as the company's liquid assets may not be sufficient to cover its current liabilities. The ratio improved in December 2023 to 0.82 but remained below 1, indicating that Baker Hughes Co may still face challenges in meeting its short-term obligations efficiently.

By December 2024, the quick ratio increased to 0.91, showing a modest improvement in liquidity compared to the previous year. Overall, the trend in Baker Hughes Co's quick ratio suggests some variability in its ability to quickly cover its short-term liabilities with its liquid assets over the analyzed period.