Baker Hughes Co (BKR)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 53,369,000 | 52,549,000 | 52,876,000 | 53,129,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 21,929,000 | 21,876,000 | 17,388,000 | 17,512,000 |
| Financial leverage ratio | 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 | 2.43 | 2.40 | 3.04 | 3.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,945,000K ÷ $15,368,000K
= 2.40
The financial leverage ratio of Baker Hughes Co has been consistently increasing over the past eight quarters, indicating a trend of higher leverage in the company's capital structure. The ratio has moved from 2.23 in Q1 2022 to 2.40 in Q4 2023, showing a steady upward trajectory.
A financial leverage ratio of 2.40 in Q4 2023 means that for every dollar of equity in the company, there are $2.40 of debt. This implies that Baker Hughes Co relies more on debt financing compared to equity, which can increase the company's financial risk.
Overall, the increasing trend in the financial leverage ratio suggests that Baker Hughes Co has been taking on more debt to fund its operations or growth initiatives, which may lead to higher interest expenses and potential challenges in meeting debt obligations in the future. It is important for stakeholders to closely monitor the company's leverage levels and debt management strategies to ensure sustainable financial health.
Peer comparison
Dec 31, 2023