Baker Hughes Co (BKR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,363,000 | 36,945,000 | 34,181,000 | 35,308,000 | 38,007,000 |
| Total stockholders’ equity | US$ in thousands | 16,895,000 | 15,368,000 | 14,394,000 | 14,830,000 | 12,893,000 |
| Financial leverage ratio | 2.27 | 2.40 | 2.37 | 2.38 | 2.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,363,000K ÷ $16,895,000K
= 2.27
The financial leverage ratio of Baker Hughes Co has exhibited a decreasing trend over the period from December 31, 2020, to December 31, 2024. This ratio decreased from 2.95 in 2020 to 2.27 in 2024. A declining trend in the financial leverage ratio may indicate that the company is relying less on debt to finance its operations and investments relative to its equity. It suggests a potentially stronger financial position and lower risk of financial distress due to reduced dependence on borrowed funds. However, it is essential to consider the industry norms and overall business strategy of Baker Hughes Co when interpreting this trend in the financial leverage ratio.
Peer comparison
Dec 31, 2024