The historical rank and industry rank for Baker Hughes Co's Gross Margin % or its related term are showing as below:
BKR'
s Gross Margin % Range Over the Past 10 Years
Min: 15.45 Med: 20.17 Max: 26.94
Current: 20.99
During the past 10 years, the highestGross Margin % of Baker Hughes Co was 26.94%. The lowest was 15.45%. And the median was 20.17%.
BKR's Gross Margin % is ranked worse than 59.39% of 884
companies
in the Oil & Gas industry
Industry Median: 28.41
vs BKR: 20.99
Baker Hughes Co had a gross margin of 20.78% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Baker Hughes Co was 4.40% per year.
Baker Hughes Co Gross Margin % Historical Data
The historical data trend for Baker Hughes Co's Gross Margin % 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.
Competitive Comparison of Baker Hughes Co's Gross Margin %
For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Baker Hughes Co's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Baker Hughes Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Baker Hughes Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Baker Hughes Co (NAS:BKR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Baker Hughes Co had a gross margin of 20.78% for the quarter that ended in Dec. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Baker Hughes Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Baker Hughes Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Following a 2022 reorganization, Baker Hughes operates across two segments: oilfield services and equipment, and industrial and energy technology. The firm's oilfield services and equipment segment, or OFSE, is one of the Big Three oilfield service players, along with SLB and Halliburton, and mostly supplies to hydrocarbon developers and producers, including national oil companies, major integrated firms, and independents. Markets outside of North America buy roughly three quarters of the firm's OFSE. Baker Hughes' industrial and energy technology segment manufactures and sells turbines, compressors, pumps, valves, and related testing and monitoring services across various energy and industrial applications.
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