Baker Hughes Co (FRA:68V) ROCE % : 11.41% (As of Mar. 2024)

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What is Baker Hughes Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Baker Hughes Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.41%.

Baker Hughes Co ROCE % Historical Data

The historical data trend for Baker Hughes Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Baker Hughes Co ROCE % Chart

Baker Hughes Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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2.31

-39.70

2.80

1.15

12.03

Baker Hughes Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															14.09	11.32	13.67	9.38	11.41

Baker Hughes Co ROCE % Calculation

Baker Hughes Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2632.707	/	( ( (32266.864 - 10455.744)	+	(33878.565 - 11912.747) )	/ 2 )
	=	2632.707	/	( (21811.12	+	21965.818)	/ 2 )
	=	2632.707	/	21888.469
	=	12.03 %

Baker Hughes Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	2509.76	/	( ( (33878.565 - 11912.747)	+	(34169.72 - 12124.68) )	/ 2 )
	=	2509.76	/	( ( 21965.818	+	22045.04 )	/ 2 )
	=	2509.76	/	22005.429
	=	11.41 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Baker Hughes Co (FRA:68V) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Baker Hughes Co ROCE % Related Terms

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Baker Hughes Co (FRA:68V) Business Description

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Address

17021 Aldine Westfield Road, Houston, TX, USA, 77073-5101

Website

https://www.bakerhughes.com

Baker Hughes is a global leader in oilfield services and oilfield equipment, with particularly strong presences in the artificial lift, specialty chemicals, and completions markets. It maintains modest exposure to offshore oil and gas production. The other half of its business focuses on industrial power generation, process solutions, and industrial asset management, with high exposure to the liquid natural gas market specifically, as well as broader industrials end markets.

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