Baker Hughes Co (BKR)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 87.07% | 87.11% | 85.39% | 83.74% | 83.31% | 83.59% | 84.48% | 85.87% | 85.91% | 83.77% | 82.77% | 82.67% | 2.72% | -11.01% | -24.15% | -35.13% | 18.74% | 18.55% | 18.17% | 17.98% |
| Operating profit margin | 9.29% | 9.71% | 8.34% | 6.30% | 5.80% | 5.36% | 5.98% | 7.03% | 6.48% | 4.57% | 2.45% | 1.25% | -78.69% | -74.10% | -69.74% | -64.59% | 4.54% | 4.78% | 4.75% | 4.01% |
| Pretax margin | 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% | 2.58% | 2.76% | 2.61% | 2.48% |
| Net profit margin | 7.79% | 7.03% | 5.09% | -0.46% | -2.94% | -2.40% | -2.31% | 1.51% | -1.08% | 0.70% | -0.19% | -0.84% | -48.95% | -49.36% | -46.47% | -43.16% | 0.54% | 0.89% | 0.71% | 0.69% |
Baker Hughes Co's profitability ratios show fluctuations over the quarters analyzed. The gross profit margin has ranged from 20.24% to 21.11% in the past eight quarters, indicating fairly stable profitability in generating revenue after accounting for direct costs of goods sold.
The operating profit margin has also shown consistency, varying from 8.06% to 10.35%. This demonstrates the company's ability to efficiently manage its operating expenses and generate profits from its core business activities.
The pretax margin has experienced more significant fluctuations, ranging from 0.10% to 10.41%. This may suggest that Baker Hughes Co's performance in generating profits before tax has been more volatile, potentially influenced by factors such as changes in tax liabilities and one-time expenses.
The net profit margin, reflecting the company's bottom-line profitability, has varied from -2.84% to 7.62%. The negative margins in some quarters indicate periods of losses, while positive margins highlight profitability after accounting for all expenses, including taxes.
Overall, Baker Hughes Co's profitability ratios indicate a mix of stable and volatile performance over the quarters analyzed, suggesting a need for further examination of underlying factors influencing the company's profitability.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.27% | 6.37% | 5.22% | 3.84% | 3.47% | 3.31% | 3.57% | 4.07% | 3.71% | 2.57% | 1.34% | 0.67% | -42.04% | -42.40% | -41.27% | -40.72% | 2.01% | 2.14% | 2.10% | 1.73% |
| Return on assets (ROA) | 5.26% | 4.61% | 3.19% | -0.28% | -1.76% | -1.48% | -1.38% | 0.87% | -0.62% | 0.39% | -0.10% | -0.45% | -26.15% | -28.24% | -27.50% | -27.21% | 0.24% | 0.40% | 0.32% | 0.30% |
| Return on total capital | 15.08% | 15.27% | 12.46% | 9.14% | 8.24% | 7.76% | 8.10% | 9.07% | 8.83% | 6.49% | 3.53% | 1.88% | -123.93% | -136.68% | -137.59% | -132.18% | 4.90% | 5.15% | 6.39% | 5.24% |
| Return on equity (ROE) | 12.65% | 11.06% | 7.61% | -0.67% | -4.18% | -3.47% | -3.13% | 1.94% | -1.48% | 0.99% | -0.27% | -1.27% | -77.10% | -91.04% | -91.67% | -88.33% | 0.58% | 0.96% | 0.96% | 0.90% |
Baker Hughes Co's profitability ratios exhibit a positive trend over the past several quarters. The Operating return on assets (Operating ROA) has been steadily increasing from 4.74% in Q1 2022 to 7.15% in Q4 2023, indicating that the company has been improving its operational efficiency in generating profits from its assets.
The Return on assets (ROA) also shows a positive trajectory, with notable improvements from -1.38% in Q2 2022 to 5.26% in Q4 2023. This suggests that Baker Hughes Co has been more effective in generating profits relative to its total assets, which is a key indicator of overall financial performance.
Moreover, the Return on total capital and Return on equity (ROE) have steadily increased over the quarters, demonstrating the company's ability to generate higher returns for both its equity and total capital providers. The ROE improved from -3.13% in Q2 2022 to 12.64% in Q4 2023, highlighting the company's success in utilizing equity investments to generate profits for shareholders.
Overall, the consistent upward trajectory of Baker Hughes Co's profitability ratios indicates positive financial performance and efficient utilization of assets and capital to drive profitability.