Baker Hughes Co (BKR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios of Baker Hughes Co, we observe a consistent trend of low debt levels in relation to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained at 0.00 throughout the reporting periods from March 31, 2020, to December 31, 2024, indicating that the company has no significant reliance on debt to finance its operations.
Furthermore, the Financial leverage ratio decreased steadily from 3.25 on March 31, 2020, to 2.27 on December 31, 2022, demonstrating a declining trend in the company's reliance on debt to support its operations and investments. This improvement in financial leverage suggests that Baker Hughes Co has been effectively managing its debt levels and maintaining a strong solvency position over the years.
Overall, the low debt ratios and decreasing financial leverage ratio indicate that Baker Hughes Co has a solid financial standing and is capable of meeting its financial obligations without excessive dependency on debt financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.56 | 16.31 | 15.66 | 13.12 | 10.73 | 9.91 | 7.51 | 5.32 | 4.69 | 3.86 | 4.22 | 4.90 | 4.35 | 3.34 | 1.79 | 0.88 | -60.75 | -61.60 | -61.94 | -63.97 |
The interest coverage ratio for Baker Hughes Co has shown significant improvement over the past few quarters. In March 2021 and June 2021, the company had a very low interest coverage ratio, indicating challenges in meeting interest obligations with its earnings.
However, starting from September 2021, the interest coverage ratio began to improve steadily, reaching levels above 1. This improvement continued through December 2022, with the interest coverage ratio increasing consistently. This positive trend suggests that Baker Hughes Co's earnings are more than sufficient to cover its interest expenses.
By December 31, 2024, Baker Hughes Co had an interest coverage ratio of 15.56, indicating a strong ability to meet its interest obligations from its earnings. This significant improvement in the interest coverage ratio demonstrates a healthier financial position and reduced risk of potential default on interest payments.