Baker Hughes Co (BKR)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 2,979,000 2,240,000 1,992,000 1,823,000 1,944,000 1,686,000 1,151,000 -98,000 -602,000 -491,000 -466,000 305,000 -219,000 140,000 -38,000 -165,000 -9,940,000 -10,544,000 -10,317,000 -10,131,000
Total assets US$ in thousands 38,363,000 37,530,000 36,656,000 37,141,000 36,945,000 36,550,000 36,093,000 35,042,000 34,181,000 33,165,000 33,753,000 34,994,000 35,308,000 35,772,000 36,669,000 36,836,000 38,007,000 37,339,000 37,523,000 37,229,000
ROA 7.77% 5.97% 5.43% 4.91% 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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,979,000K ÷ $38,363,000K
= 7.77%

The return on assets (ROA) of Baker Hughes Co has shown a significant improvement over the past few years based on the data provided. The ROA was highly negative in the first half of 2020, indicating that the company's assets were not generating sufficient returns during that period.

However, starting from March 2021, the ROA gradually improved and turned positive, indicating that the company's asset utilization and profitability have been on an upward trend. The ROA continued to increase steadily throughout 2023 and 2024, reaching 7.77% by the end of December 2024.

This indicates that Baker Hughes Co has been more effective in generating profits from its assets. An increasing ROA suggests that the company is utilizing its assets efficiently to generate profit, which is a positive sign for investors and indicates improved financial health.