Baker Hughes Co (BKR)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,363,000 | 37,530,000 | 36,656,000 | 37,141,000 | 36,945,000 | 36,550,000 | 36,093,000 | 35,042,000 | 34,181,000 | 33,165,000 | 33,753,000 | 34,994,000 | 35,308,000 | 35,772,000 | 36,669,000 | 36,836,000 | 38,007,000 | 37,339,000 | 37,523,000 | 37,229,000 |
| Total stockholders’ equity | US$ in thousands | 16,895,000 | 16,189,000 | 15,574,000 | 15,391,000 | 15,368,000 | 15,250,000 | 15,125,000 | 14,714,000 | 14,394,000 | 14,144,000 | 14,882,000 | 15,704,000 | 14,830,000 | 14,142,000 | 13,890,000 | 13,043,000 | 12,893,000 | 11,582,000 | 11,254,000 | 11,470,000 |
| Financial leverage ratio | 2.27 | 2.32 | 2.35 | 2.41 | 2.40 | 2.40 | 2.39 | 2.38 | 2.37 | 2.34 | 2.27 | 2.23 | 2.38 | 2.53 | 2.64 | 2.82 | 2.95 | 3.22 | 3.33 | 3.25 |
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 shown a declining trend over the past years, indicating an improvement in the company's debt management. From a high of 3.33 in June 2020, the ratio steadily decreased to 2.27 by June 2022. This suggests that the company has been reducing its reliance on debt funding in relation to its equity, which can be a positive sign for investors and creditors as it signifies lower financial risk. However, the ratio slightly increased to 2.41 by March 2024, indicating a slight uptick in leverage. Overall, Baker Hughes Co's financial leverage ratio appears to be relatively stable, indicating a balanced capital structure with moderate reliance on debt financing.
Peer comparison
Dec 31, 2024