Baker Hughes Co (BKR)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,943,000 | -601,000 | -219,000 | -9,940,000 | 128,000 |
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Net profit margin | 7.67% | -2.94% | -1.08% | -49.48% | 0.55% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,943,000K ÷ $25,330,000K
= 7.67%
Net profit margin is a key financial ratio that measures a company's profitability by indicating how much of each dollar in revenue translates into profit after all expenses are deducted. Analyzing Baker Hughes Co's net profit margin over the past five years reveals fluctuations in its profitability.
In 2019, Baker Hughes Co achieved a net profit margin of 0.54%, indicating that it retained $0.0054 in profit for every dollar of revenue generated. This modest profitability was followed by a significant decline in 2020, with a net profit margin of -48.01%. This negative margin suggests that the company incurred substantial expenses that exceeded its revenue, leading to a net loss.
The company's profitability showed signs of improvement in 2021 and 2022, with net profit margins of -1.07% and -2.84%, respectively. Although still negative, these margins were less severe compared to 2020.
The most recent data for 2023 reflects a positive trend, with Baker Hughes Co achieving a net profit margin of 7.62%. This indicates that the company was able to generate a profit of $0.0762 for every dollar of revenue, marking a notable improvement in profitability compared to the previous years.
Overall, Baker Hughes Co's net profit margin has shown variability over the past five years, with fluctuations from negative to positive margins. The recent improvement in profitability in 2023 suggests potential positive developments in the company's financial performance.
Peer comparison
Dec 31, 2023