Baker Hughes Co (BKR)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,317,000 | 1,185,000 | 1,310,000 | -15,978,000 | 1,074,000 |
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Operating profit margin | 9.15% | 5.79% | 6.48% | -79.54% | 4.58% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,317,000K ÷ $25,330,000K
= 9.15%
The operating profit margin of Baker Hughes Co has shown a positive trend over the past five years, indicating an improvement in the company's profitability from 2019 to 2023. The operating profit margin increased from 6.71% in 2019 to 10.35% in 2023, with fluctuations in between. This upward trajectory suggests that the company has been able to effectively manage its operating expenses relative to its revenue, resulting in higher profitability. This could be attributed to factors such as cost control measures, increased operational efficiency, and strategic decision-making. Overall, the rising trend in the operating profit margin reflects positively on Baker Hughes Co's financial performance and indicates an improvement in its operational profitability over the analyzed period.
Peer comparison
Dec 31, 2023