Baker Hughes Co (BKR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,081,000 | 2,317,000 | 1,185,000 | 1,310,000 | -15,978,000 |
| Interest expense | US$ in thousands | 198,000 | 216,000 | 252,000 | 299,000 | 264,000 |
| Interest coverage | 15.56 | 10.73 | 4.70 | 4.38 | -60.52 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,081,000K ÷ $198,000K
= 15.56
The interest coverage ratio of Baker Hughes Co has displayed significant fluctuations over the past few years. Starting from a concerning ratio of -60.52 on December 31, 2020, the company's ability to cover its interest expenses improved considerably in subsequent years, reaching a ratio of 4.38 on December 31, 2021, and further increasing to 4.70 on December 31, 2022. The trend continued upwards with ratios of 10.73 on December 31, 2023, and 15.56 on December 31, 2024, indicating a strong ability to cover interest expenses with operating income. The consistent improvement in the interest coverage ratio reflects positively on the company's financial health and suggests a strengthening capacity to meet its debt obligations from operating earnings.
Peer comparison
Dec 31, 2024