Baker Hughes Co (BKR)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 22,104,000 | 17,008,000 | 17,335,000 | 130,000 | 4,432,000 |
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Gross profit margin | 87.26% | 83.16% | 85.80% | 0.65% | 18.89% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $22,104,000K ÷ $25,330,000K
= 87.26%
The gross profit margin of Baker Hughes Co has shown some variation over the past five years. In 2023, the gross profit margin stood at 20.59%, slightly lower than the 20.80% recorded in 2022. This indicates a slight decrease in the percentage of revenue retained as gross profit from sales in 2023 compared to the previous year. However, the margin remained relatively stable and comparable to previous years, with 2021 and 2019 also showing levels above 19%.
Notably, the gross profit margin in 2020 was significantly lower at 15.45%, which suggests a lower efficiency in generating profits from sales during that period. The improvement seen in subsequent years indicates a potential strengthening of the company's cost management and pricing strategies.
Overall, while there have been fluctuations in the gross profit margin of Baker Hughes Co in recent years, the company has generally maintained a reasonable level of profitability relative to its revenues. Further analysis would be necessary to understand the specific factors driving these changes and their implications for the company's financial performance.
Peer comparison
Dec 31, 2023