Baker Hughes Co (BKR)
Quick ratio
| 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 | US$ in thousands | 2,646,000 | 3,201,000 | 2,805,000 | 1,866,000 | 1,883,000 | 2,240,000 | 2,264,000 | 2,572,000 | 3,252,000 | 3,235,000 | 3,274,000 | 3,776,000 | 3,445,000 | 3,258,000 | 3,297,000 | 2,006,000 | 2,147,000 | 1,651,000 | 1,871,000 | 1,859,000 |
| Short-term investments | US$ in thousands | 975,000 | 1,052,000 | 1,044,000 | 1,094,000 | 748,000 | 848,000 | 912,000 | 1,042,000 | 1,033,000 | 403,000 | 544,000 | 714,000 | 1,502,000 | 2,000 | 2,000 | 2,000 | 24,000 | 39,000 | 40,000 | 49,000 |
| Receivables | US$ in thousands | 7,075,000 | 6,505,000 | 6,418,000 | 6,291,000 | 5,958,000 | 5,583,000 | 5,572,000 | 5,738,000 | 5,651,000 | 5,326,000 | 5,407,000 | 5,263,000 | 5,622,000 | 5,647,000 | 5,636,000 | 6,148,000 | 6,416,000 | 6,165,000 | 6,310,000 | 6,319,000 |
| Total current liabilities | US$ in thousands | 12,991,000 | 12,681,000 | 12,311,000 | 11,618,000 | 11,075,000 | 9,465,000 | 9,375,000 | 9,142,000 | 9,128,000 | 9,354,000 | 9,805,000 | 9,958,000 | 10,227,000 | 10,639,000 | 10,567,000 | 10,141,000 | 10,014,000 | 9,332,000 | 9,341,000 | 9,052,000 |
| 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 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty covering its short-term liabilities with its current liquid assets.
Looking at Baker Hughes Co's quick ratio over the past eight quarters, we see a downward trend from Q1 2022 to Q4 2023. The quick ratio decreased from 1.15 in Q1 2022 to 0.86 in Q4 2023. This indicates that Baker Hughes Co's ability to meet its short-term obligations with its most liquid assets has deteriorated over this period.
While a quick ratio above 1 is generally preferred as it suggests a company is able to cover its short-term liabilities comfortably, it's important to consider the industry norms and the company's specific circumstances. In the case of Baker Hughes Co, the downward trend in the quick ratio may warrant further investigation into the company's liquidity position and its ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023