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Baker Hughes Co Operating Margin %

: 7.91% (As of Sep. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Baker Hughes Co's Operating Income for the three months ended in Sep. 2021 was $403 Mil. Baker Hughes Co's Revenue for the three months ended in Sep. 2021 was $5,093 Mil. Therefore, Baker Hughes Co's Operating Margin % for the quarter that ended in Sep. 2021 was 7.91%.

Warning Sign:

Baker Hughes Co operating margin has been in 5-year decline. The average rate of decline per year is -16.5%.

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

NYSE:BKR' s Operating Margin % Range Over the Past 10 Years
Min: 2.92   Med: 6.17   Max: 14.26
Current: 7.03

2.92
14.26

NYSE:BKR's Operating Margin % is ranked higher than
56% of the 1015 Companies
in the Oil & Gas industry.

( Industry Median: 4.34 vs. NYSE:BKR: 7.03 )

Baker Hughes Co's 5-Year Average Operating Margin % Growth Rate was -16.50% per year.

Baker Hughes Co's Operating Income for the three months ended in Sep. 2021 was $403 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $1,443 Mil.


Baker Hughes Co Operating Margin % Historical Data

The historical data trend for Baker Hughes Co's Operating 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
Operating Margin %
Premium Member Only 7.69 2.92 5.63 6.71 3.84

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
Operating 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 3.80 7.92 5.67 6.50 7.91

Competitive Comparison

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

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

* The bar in red indicates where Baker Hughes Co's Operating Margin % falls into.



Baker Hughes Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=795 / 20705
=3.84 %

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

Operating Margin %=Operating Income (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=403 / 5093
=7.91 %

* 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.


Baker Hughes Co  (NYSE:BKR) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Baker Hughes Co Operating Margin % Related Terms

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