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Baker Hughes Co Interest Coverage

: 6.01 (As of Sep. 2021)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Baker Hughes Co's Operating Income for the three months ended in Sep. 2021 was $403 Mil. Baker Hughes Co's Interest Expense for the three months ended in Sep. 2021 was $-67 Mil. Baker Hughes Co's interest coverage for the quarter that ended in Sep. 2021 was 6.01. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:BKR' s Interest Coverage Range Over the Past 10 Years
Min: 3.01   Med: 6.26   Max: 19.83
Current: 5.25

3.01
19.83

NYSE:BKR's Interest Coverage is ranked lower than
99.99% of the 318 Companies
in the Oil & Gas industry.

( Industry Median: 10.78 vs. NYSE:BKR: 5.25 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Baker Hughes Co Interest Coverage Historical Data

The historical data trend for Baker Hughes Co's Interest Coverage 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
Interest Coverage
Premium Member Only 9.86 3.82 5.77 6.75 3.01

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
Interest Coverage 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 2.91 6.30 3.66 5.14 6.01

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Oil & Gas industry and Energy sector, Baker Hughes Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Baker Hughes Co's Interest Coverage falls into.



Baker Hughes Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2020, Baker Hughes Co's Interest Expense was $-264 Mil. Its Operating Income was $795 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,744 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*795/-264
=3.01

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

Here, for the three months ended in Sep. 2021, Baker Hughes Co's Interest Expense was $-67 Mil. Its Operating Income was $403 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,708 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*403/-67
=6.01

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Baker Hughes Co  (NYSE:BKR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Baker Hughes Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Baker Hughes Co's Interest Coverage 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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