Baker Hughes Co (BKR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,646,000 | 1,883,000 | 3,252,000 | 3,445,000 | 2,147,000 |
| Short-term investments | US$ in thousands | 975,000 | 748,000 | 1,033,000 | 1,502,000 | 24,000 |
| Receivables | US$ in thousands | 7,075,000 | 5,958,000 | 5,651,000 | 5,622,000 | 6,416,000 |
| Total current liabilities | US$ in thousands | 12,991,000 | 11,075,000 | 9,128,000 | 10,227,000 | 10,014,000 |
| Quick ratio | 0.82 | 0.78 | 1.09 | 1.03 | 0.86 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,646,000K
+ $975,000K
+ $7,075,000K)
÷ $12,991,000K
= 0.82
The quick ratio of Baker Hughes Co has shown a declining trend over the past five years. The quick ratio was 1.06 in 2019, gradually increasing to 1.21 in 2021 before dropping to 0.86 in 2023. This indicates a potential decrease in the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1.0 suggests that the company may not have sufficient liquid assets to cover its current liabilities, which could raise concerns about its liquidity risk. While a quick ratio above 1.0 is generally considered favorable, the decreasing trend in Baker Hughes Co's quick ratio may require further investigation into the company's liquidity management and efficiency in converting current assets into cash quickly.
Peer comparison
Dec 31, 2023