Baker Hughes Co (BKR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 | 53,369,000 |
| Operating ROA | 6.27% | 3.47% | 3.71% | -42.04% | 2.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,317,000K ÷ $36,945,000K
= 6.27%
Baker Hughes Co's operating return on assets (operating ROA) has shown a positive trend over the past five years. The company's operating ROA increased from 3.00% in 2019 to 7.15% in 2023, indicating an improvement in the company's ability to generate operating income from its assets. This growth suggests that Baker Hughes Co has become more efficient in utilizing its assets to generate operating profits.
The steady growth in operating ROA demonstrates management's efforts to improve operational efficiency and profitability over the years. The increase in operating ROA from 2022 to 2023 (5.53% to 7.15%) indicates a significant improvement in the company's performance in generating operating income relative to its asset base.
Overall, the trend in Baker Hughes Co's operating ROA reflects positively on the company's operational effectiveness and suggests that it is successfully leveraging its assets to drive profitability.
Peer comparison
Dec 31, 2023