Baker Hughes Co (BKR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 | 53,369,000 |
| Total stockholders’ equity | US$ in thousands | 15,368,000 | 14,394,000 | 14,830,000 | 12,893,000 | 21,929,000 |
| Financial leverage ratio | 2.40 | 2.37 | 2.38 | 2.95 | 2.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,945,000K ÷ $15,368,000K
= 2.40
Based on the data provided, Baker Hughes Co's financial leverage ratio has fluctuated over the past five years. In 2023, the financial leverage ratio stands at 2.40, showing a slight increase from 2.37 in 2022. This suggests that the company's reliance on debt to finance its operations and growth has marginally increased.
Comparing to previous years, the financial leverage ratio was 2.38 in 2021, 2.95 in 2020, and 2.43 in 2019. The significant spike in 2020 to 2.95 indicates a higher level of debt in relation to equity, likely due to strategic decisions or external factors impacting the company's capital structure.
Overall, the trend in Baker Hughes Co's financial leverage ratio indicates some variability in the company's capital structure over the years. It is essential for stakeholders to closely monitor this ratio to assess the company's risk profile and financial stability, particularly in terms of the impact of debt on its overall performance and solvency.
Peer comparison
Dec 31, 2023