Baker Hughes Co (BKR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,368,000 | 14,394,000 | 14,830,000 | 12,893,000 | 21,929,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $15,368,000K)
= 0.00
The debt-to-capital ratio of Baker Hughes Co has fluctuated over the past five years, ranging from 0.23 to 0.37. A lower debt-to-capital ratio indicates a lower level of dependence on debt financing and a greater proportion of capital being sourced from equity.
In 2023, the debt-to-capital ratio decreased to 0.28 from 0.32 in 2022. This suggests that Baker Hughes Co reduced its reliance on debt financing compared to the previous year, which may indicate improved financial stability and lower financial risk.
Overall, the downward trend in the debt-to-capital ratio over the past two years signals a positive shift towards a healthier financial structure for Baker Hughes Co. It is important for investors and analysts to continue monitoring this ratio to assess the company's leverage and financial risk management.
Peer comparison
Dec 31, 2023