Baker Hughes Co (BKR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,943,000 | -601,000 | -219,000 | -9,940,000 | 128,000 |
| Total assets | US$ in thousands | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 | 53,369,000 |
| ROA | 5.26% | -1.76% | -0.62% | -26.15% | 0.24% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,943,000K ÷ $36,945,000K
= 5.26%
Baker Hughes Co's return on assets (ROA) has demonstrated significant variability over the five-year period under review. In 2023, the company achieved an ROA of 5.26%, indicating that it generated a return of 5.26% on every dollar of assets held. This represents a notable improvement from the negative ROA figures recorded in the previous two years, specifically -1.76% in 2022 and -0.62% in 2021.
The negative ROA values in 2022 and 2021 suggest that Baker Hughes Co was not effectively utilizing its assets to generate profits during those periods. However, it is worth noting that the company experienced a substantial improvement in 2023, signaling potential operational efficiency and improved asset utilization.
In contrast, Baker Hughes Co faced significant challenges in terms of ROA in 2020, with a notably low ROA of -26.15%, indicating a substantial loss relative to the size of its asset base. This performance could be attributed to various factors, such as operational inefficiencies, economic conditions, or asset impairment.
Looking back to 2019, Baker Hughes Co achieved a positive ROA of 0.24%, which, although modest, indicates that the company was able to generate a return on its assets during that period.
Overall, the trend in Baker Hughes Co's ROA shows fluctuations over the past five years, with a notable recovery in 2023. Further analysis of the company's operations, financial health, and industry dynamics would be necessary to understand the factors driving these ROA variations and to assess its overall performance.
Peer comparison
Dec 31, 2023