Baker Hughes Co (BKR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.40 | 2.37 | 2.38 | 2.95 | 2.43 |
Baker Hughes Co's solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent of its leverage.
The Debt-to-assets ratio has shown a decreasing trend over the past five years, indicating that the company has been able to reduce its reliance on debt to finance its assets. A lower debt-to-assets ratio is generally considered favorable as it suggests lower financial risk.
The Debt-to-capital ratio has also decreased over the years, suggesting that the company has been able to fund a lower proportion of its operations with debt compared to its capital. This indicates a stronger financial position and better solvency.
The Debt-to-equity ratio has fluctuated but has generally decreased from 2019 to 2023. A lower debt-to-equity ratio indicates that the company is financing a smaller portion of its operations through debt relative to its equity. This could imply lower financial risk and better long-term stability.
The Financial leverage ratio has decreased over the years, which suggests that the company has reduced its reliance on debt financing. A lower financial leverage ratio indicates less reliance on debt to finance operations and potentially lower financial risk.
Overall, the trend of decreasing solvency ratios over the years reflects a positive financial position for Baker Hughes Co and indicates improved long-term financial stability and reduced financial risk.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 10.73 | 4.70 | 4.38 | -60.52 | 4.53 |
The interest coverage ratio for Baker Hughes Co has shown a generally improving trend over the past five years. The ratio has increased from 6.75 in 2019 to 12.22 in 2023, indicating the company's ability to meet its interest obligations with its operating income has strengthened significantly. This signifies that Baker Hughes Co's profitability and operational efficiency have improved over time, allowing the company to comfortably cover its interest expenses. The consistent increase in the interest coverage ratio is a positive indicator of the company's financial health and ability to manage its debt obligations. Overall, the company's interest coverage has shown a favorable upward trajectory, reflecting its strong financial performance.