Baker Hughes Co (BKR)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 3,236,000 2,628,000 -1,000 539,000 -9,381,000
Revenue US$ in thousands 27,631,000 25,330,000 20,453,000 20,203,000 20,088,000
Pretax margin 11.71% 10.38% -0.00% 2.67% -46.70%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $3,236,000K ÷ $27,631,000K
= 11.71%

Baker Hughes Co's pretax margin demonstrates significant fluctuations over the five-year period analyzed. The company faced challenges in December 2020 with a negative pretax margin of -46.70%, indicating that its pre-tax earnings were in deficit relative to its revenue. However, by December 2021, there was a notable improvement as the pretax margin increased to 2.67%, suggesting that the company managed to generate a modest profit before accounting for taxes.

In December 2022, Baker Hughes Co's financial performance showed stability as the pretax margin stood at -0.00%, indicating a break-even point where the company's pre-tax earnings were essentially at par with its revenue. The following year, in December 2023, the pretax margin saw a considerable upturn, reaching 10.38%, indicating a healthy profitability level before tax considerations.

By December 2024, Baker Hughes Co's pretax margin further improved to 11.71%, demonstrating sustained growth in the company's ability to generate profits relative to its revenue. Overall, the trend reflects a mix of challenges and recovery, with the company successfully enhancing its profitability over the period under review.