Baker Hughes Co (BKR)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,236,000 | 2,967,000 | 2,719,000 | 2,507,000 | 2,629,000 | 2,457,000 | 1,840,000 | 573,000 | -3,000 | 303,000 | 368,000 | 1,100,000 | 538,000 | 1,114,000 | 749,000 | 458,000 | -9,381,000 | -10,341,000 | -10,013,000 | -9,711,000 |
| Revenue (ttm) | US$ in thousands | 27,631,000 | 26,809,000 | 26,547,000 | 25,693,000 | 24,941,000 | 23,990,000 | 22,603,000 | 21,333,000 | 20,452,000 | 20,453,000 | 20,175,000 | 20,265,000 | 20,202,000 | 20,101,000 | 20,058,000 | 19,648,000 | 20,306,000 | 21,363,000 | 22,203,000 | 23,474,000 |
| Pretax margin | 11.71% | 11.07% | 10.24% | 9.76% | 10.54% | 10.24% | 8.14% | 2.69% | -0.01% | 1.48% | 1.82% | 5.43% | 2.66% | 5.54% | 3.73% | 2.33% | -46.20% | -48.41% | -45.10% | -41.37% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,236,000K ÷ $27,631,000K
= 11.71%
Baker Hughes Co's pretax margin, which represents the percentage of revenue that translates into pre-tax profit, exhibited significant fluctuations over the specified period. Starting with negative margins in the first half of 2020, the company showed a continuous improvement in profitability, turning positive in the first quarter of 2021. Subsequently, the pretax margin varied between 2-5% until the second quarter of 2022 when it dropped to 1.82%.
However, from the first quarter of 2023 onwards, Baker Hughes Co demonstrated a notable uptrend in pretax margin, reaching double-digit figures by the end of 2024. This upward trajectory highlights the company's enhanced operational efficiency and potentially strategic decisions that positively impacted its bottom line.
Overall, the trend in Baker Hughes Co's pretax margin showcases a significant turnaround from negative to positive territory and a commendable progression towards sustained profitability over the analyzed period.
Peer comparison
Dec 31, 2024