Baker Hughes Co (BKR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 15,368,000 | 14,394,000 | 14,830,000 | 12,893,000 | 21,929,000 |
| ROE | 12.64% | -4.18% | -1.48% | -77.10% | 0.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,943,000K ÷ $15,368,000K
= 12.64%
To analyze Baker Hughes Co's Return on Equity (ROE) over the past five years, we observe the following trends:
1. In 2019, the ROE was positive at 0.58%. This indicated that the company generated a modest return for its shareholders relative to their equity investment in the business.
2. The ROE drastically declined in 2020 to -77.10%. This negative ROE suggests that the company incurred significant losses relative to shareholder equity during that period, possibly due to financial challenges or poor performance.
3. The negative trend continued in 2021 with an ROE of -1.48%, although showing some improvement from the previous year. This could indicate that the company's performance was still below expectations but moving towards recovery.
4. The ROE remained negative in 2022 at -4.18%, indicating continued challenges for the company in generating profits relative to shareholder equity.
5. In 2023, there was a significant improvement in ROE to 12.64%, returning to positive territory. This could suggest that the company implemented strategic changes or witnessed improved financial performance during that period.
Overall, the fluctuating ROE values indicate varying levels of profitability and performance for Baker Hughes Co over the past five years. Investors and stakeholders should closely monitor future financial reports to assess the company's sustainability and growth prospects.
Peer comparison
Dec 31, 2023