Baker Hughes Co (BKR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,317,000 | 2,329,000 | 1,884,000 | 1,345,000 | 1,186,000 | 1,097,000 | 1,206,000 | 1,425,000 | 1,310,000 | 918,000 | 491,000 | 245,000 | -15,978,000 | -15,830,000 | -15,484,000 | -15,161,000 | 1,074,000 | 1,126,000 | 1,111,000 | 918,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 21,929,000 | 21,876,000 | 17,388,000 | 17,512,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,317,000K ÷ ($—K + $15,368,000K)
= 15.08%
Based on the data provided, Baker Hughes Co's return on total capital has shown a consistent positive trend over the past eight quarters, steadily increasing from 7.40% in Q1 2022 to 12.34% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its shareholders.
The gradual improvement in the return on total capital suggests that Baker Hughes Co has been efficiently managing its capital investments and utilizing its assets to generate income. A higher return on total capital demonstrates the company's ability to generate profits relative to the total capital employed in its operations.
Overall, the increasing trend in return on total capital reflects positively on Baker Hughes Co's financial performance and strategic allocation of capital resources. It indicates that the company has been effective in achieving a solid return on its invested capital over the specified period.
Peer comparison
Dec 31, 2023