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Baker Hughes Co Gross Margin %

: 19.83% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Baker Hughes Co's Gross Profit for the three months ended in Sep. 2021 was $1,010 Mil. Baker Hughes Co's Revenue for the three months ended in Sep. 2021 was $5,093 Mil. Therefore, Baker Hughes Co's Gross Margin % for the quarter that ended in Sep. 2021 was 19.83%.

Warning Sign:

Baker Hughes Co gross margin has been in long term decline. The average rate of decline per year is -9.1%.


The historical rank and industry rank for Baker Hughes Co's Gross Margin % or its related term are showing as below:

NYSE:BKR' s Gross Margin % Range Over the Past 10 Years
Min: 15.45   Med: 18.13   Max: 26.94
Current: 18.78

15.45
26.94

During the past 6 years, the highest Gross Margin % of Baker Hughes Co was 26.94%. The lowest was 15.45%. And the median was 18.13%.

NYSE:BKR's Gross Margin % is ranked lower than
57% of the 967 Companies
in the Oil & Gas industry.

( Industry Median: 23.80 vs. NYSE:BKR: 18.78 )

Baker Hughes Co had a gross margin of 19.83% for the quarter that ended in Sep. 2021 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Baker Hughes Co was -9.10% 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.

* Premium members only.

Baker Hughes Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Premium Member Only 22.41 17.67 17.42 18.59 15.45

Baker Hughes Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.99 18.36 17.94 18.98 19.83

Competitive Comparison

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 Gross Margin % Distribution

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.



Baker Hughes Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Baker Hughes Co's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=3199 / 20705
=(Revenue - Cost of Goods Sold) / Revenue
=(20705 - 17506) / 20705
=15.45 %

Baker Hughes Co's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=1010 / 5093
=(Revenue - Cost of Goods Sold) / Revenue
=(5093 - 4083) / 5093
=19.83 %

* 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  (NYSE: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 19.83% for the quarter that ended in Sep. 2021 => No sustainable competitive advantage


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.


Baker Hughes Co Business Description

Baker Hughes Co logo
Industry
Energy » Oil & Gas NAICS : 213112 SIC : 1389
Traded in Other Exchanges
Address
17021 Aldine Westfield Road, Houston, TX, USA, 77073-5101
Baker Hughes in its current form originated in 2017 from the merger of Baker Hughes with GE Oil & Gas. Baker Hughes' history of oilfield innovation stretches back over a century, and with the combination with GE, the company now can offer the full spectrum of services to oil and gas companies, from upstream to downstream.
Executives
General Electric Co director, 10 percent owner 5 NECCO STREET BOSTON MA 02210
Simonelli Lorenzo director, officer: Chairman, President and CEO 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Qasem Rami officer: EVP, Digital Solutions 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Ukpong Uwem officer: EVP, Global Operations 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Camilleri Kurt officer: SVP/Controller/Chief Acctg Off 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Saunders Neil officer: EVP, Oilfield Equipment 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Borras Maria C officer: EVP, Oilfield Services 2929 ALLEN PARKWAY, SUITE 2100 HOUSTON TX 77019
Worrell Brian officer: Chief Financial Officer 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Christie Roderick officer: EVP, Turbomachinery 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Fiorentino Michele officer: EVP, Strategy & Business Dev 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Brenneman Gregory D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BRENNEMAN GREGORY D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Elsenhans Lynn Laverty director 6400 POPLAR AVENUE MEMPHIS TN 38197
Carroll Cynthia B director C/O ALCAN INC. 1188 SHERBROOKE STREET WEST MONTREAL A8 H3A 3G2
Ebel Gregory L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EBEL GREGORY L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Rice John G director GENERAL ELECTRIC COMPANY 41 FARNSWORTH STREET BOSTON MA 02210

Baker Hughes Co Headlines

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