Baker Hughes Co (BKR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $15,368,000K
= 0.00
The debt-to-equity ratio of Baker Hughes Co has shown a fluctuating trend over the past five years, indicating the company's mix of debt and equity financing. In 2023, the ratio decreased to 0.39 from 0.46 in 2022. This suggests that the company relied less on debt to finance its operations compared to the previous year.
Looking back further, the ratio was 0.45 in 2021, 0.59 in 2020, and 0.30 in 2019. The significant increase in the ratio in 2020 suggests a higher level of debt relative to equity, possibly due to strategic financing decisions or economic factors. However, the ratio decreased sharply in 2019, indicating a more conservative approach to debt financing.
Overall, the decreasing trend in the debt-to-equity ratio in recent years may indicate a shift towards a more balanced capital structure, possibly aimed at reducing financial risk and improving financial stability. Investors and analysts may view a decreasing trend in this ratio positively as it signals a company's decreasing reliance on debt and improving financial health. It would be advisable to monitor this ratio in the future to assess any ongoing trends in Baker Hughes Co's capital structure and financial risk.
Peer comparison
Dec 31, 2023