Baker Hughes Co (BKR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.26% | 83.16% | 85.80% | 0.65% | 18.89% |
| Operating profit margin | 9.15% | 5.79% | 6.48% | -79.54% | 4.58% |
| Pretax margin | 10.38% | -0.00% | 2.67% | -46.70% | 2.60% |
| Net profit margin | 7.67% | -2.94% | -1.08% | -49.48% | 0.55% |
Baker Hughes Co's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been relatively stable, ranging from 15.45% in 2020 to 20.80% in 2022, with the latest figure at 20.59% in 2023.
The operating profit margin has shown improvement over the years, increasing from 3.84% in 2020 to 10.35% in 2023. This indicates the company's ability to effectively manage its operating expenses and generate profits from its core business activities.
The pretax margin also displays variability, with a significant improvement in 2023 compared to negative figures in previous years. This suggests a positive turnaround in the company's pre-tax profitability performance.
On the bottom line, the net profit margin improved significantly in 2023, reaching 7.62%, after experiencing negative margins in 2020 and 2022. The positive trend in net profit margin indicates an enhancement in the company's overall profitability and efficiency in converting revenues into net income.
Overall, while Baker Hughes Co has experienced fluctuations in profitability ratios in recent years, there are signs of improvement in 2023, particularly in operating profit margin and net profit margin. This suggests the company may be implementing effective strategies to enhance profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.27% | 3.47% | 3.71% | -42.04% | 2.01% |
| Return on assets (ROA) | 5.26% | -1.76% | -0.62% | -26.15% | 0.24% |
| Return on total capital | 15.08% | 8.23% | 8.83% | -123.93% | 4.90% |
| Return on equity (ROE) | 12.64% | -4.18% | -1.48% | -77.10% | 0.58% |
Baker Hughes Co's profitability ratios have shown varying trends over the past five years, as indicated by the data provided.
1. Operating return on assets (Operating ROA) has been on an upward trajectory, increasing from 3.00% in 2019 to 7.15% in 2023. This indicates the company's ability to generate profit from its assets through its core operations.
2. Return on assets (ROA) has also shown improvement, moving from negative figures in 2020 and 2021 to a positive 5.26% in 2023. This suggests that the company has been able to better utilize its assets to generate profits for its shareholders.
3. Return on total capital has been consistently positive over the years, with a notable increase from 5.60% in 2019 to 12.34% in 2023. This ratio highlights the company's efficiency in generating returns for both debt and equity holders.
4. Return on equity (ROE) has displayed a mixed pattern, with significant fluctuations including negative figures in 2020 and 2021. However, there has been a notable improvement to 12.64% in 2023, indicating a better return to shareholders' equity.
Overall, the profitability ratios of Baker Hughes Co demonstrate an improving trend in recent years, reflecting potential enhancements in operational efficiency and profitability. However, it is important to continue monitoring these ratios to ensure sustained growth and profitability in the long term.