Baker Hughes Co (BKR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,628,000 | -1,000 | 539,000 | -9,381,000 | 610,000 |
| Revenue | US$ in thousands | 25,330,000 | 20,453,000 | 20,203,000 | 20,088,000 | 23,463,000 |
| Pretax margin | 10.38% | -0.00% | 2.67% | -46.70% | 2.60% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,628,000K ÷ $25,330,000K
= 10.38%
The pretax margin for Baker Hughes Co has varied significantly over the past five years. In 2023, the pretax margin improved to 10.41% from a very low 0.10% in 2022. This indicates a significant recovery in profitability, suggesting that the company managed to increase its earnings before taxes as a percentage of its revenue.
The pretax margin was 2.09% in 2021, which was lower than the 3.16% recorded in 2019 but still a positive figure indicating profitability. However, in 2020, the company faced a significant challenge as the pretax margin was -73.42%, indicating that the company incurred losses before taxes that year.
Overall, the upward trend in the pretax margin from 2020 to 2023 signals an improvement in Baker Hughes Co's financial performance, reflecting better cost management or revenue generation strategies. However, it is essential to further investigate the factors contributing to these fluctuations to assess the company's long-term profitability and sustainability.
Peer comparison
Dec 31, 2023