Baker Hughes Co (BKR)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 16,895,000 16,189,000 15,574,000 15,391,000 15,368,000 15,250,000 15,125,000 14,714,000 14,394,000 14,144,000 14,882,000 15,704,000 14,830,000 14,142,000 13,890,000 13,043,000 12,893,000 11,582,000 11,254,000 11,470,000
ROE 17.63% 13.84% 12.79% 11.84% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,979,000K ÷ $16,895,000K
= 17.63%

Based on the data provided, Baker Hughes Co has shown a significant improvement in its Return on Equity (ROE) over the past few quarters. The ROE was negative throughout most of 2020 and early 2021, indicating that the company was not generating sufficient profits relative to its equity.

However, from September 2021 onwards, Baker Hughes Co started to show a positive ROE, indicating that the company's profitability relative to shareholders' equity improved. The ROE continued to increase steadily throughout 2022 and 2023, reaching double digits by the end of 2023.

In 2024, Baker Hughes Co's ROE experienced a substantial increase, reaching its highest level of 17.63% by the end of December. This significant improvement suggests that the company is utilizing its equity more efficiently to generate profits for its shareholders.

Overall, the trend in Baker Hughes Co's ROE indicates a positive trajectory, showing a strong rebound in profitability and efficiency in utilizing shareholders' equity for generating returns. It is essential for investors and stakeholders to monitor this metric to assess the company's financial performance and growth prospects.