GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Baker Hughes Co (NAS:BKR) » Definitions » Financial Strength

BKR (Baker Hughes Co) Financial Strength : 7 (As of Mar. 2025)


View and export this data going back to 2017. Start your Free Trial

What is Baker Hughes Co Financial Strength?

Baker Hughes Co has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Baker Hughes Co's Interest Coverage for the quarter that ended in Mar. 2025 was 14.75. Baker Hughes Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.23. As of today, Baker Hughes Co's Altman Z-Score is 2.12.


Competitive Comparison of Baker Hughes Co's Financial Strength

For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Baker Hughes Co's Financial Strength falls into.


;
;

Baker Hughes Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Baker Hughes Co's Interest Expense for the months ended in Mar. 2025 was $-51 Mil. Its Operating Income for the months ended in Mar. 2025 was $752 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $5,969 Mil.

Baker Hughes Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*752/-51
=14.75

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Baker Hughes Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(55 + 5969) / 25708
=0.23

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Baker Hughes Co has a Z-score of 2.12, indicating it is in Grey Zones. This implies that Baker Hughes Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.12 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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  (NAS:BKR) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Baker Hughes Co has the Financial Strength Rank of 7.


Baker Hughes Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Baker Hughes Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Baker Hughes Co Business Description

Address
575 North Dairy Ashford Road, Suite 100, Houston, TX, USA, 77079-1121
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.
Executives
James E Apostolides officer: SVP, Enterprise Op Excellence 17021 ALDINE WESTFIELD RD, HOUSTON TX 77073
Nancy Buese officer: Chief Financial Officer 1515 ARAPAHOE STREET, DENVER CO 80202-2126
Maria C Borras officer: EVP, Oilfield Services & Equip 2929 ALLEN PARKWAY, SUITE 2100, HOUSTON TX 77019
Lorenzo Simonelli director, officer: Chairman, President and CEO 17021 ALDINE WESTFIELD ROAD, HOUSTON TX 77073
Regina Jones officer: Chief Legal Officer 7102 COMMERCE WAY, BRENTWOOD TN 37027
Rebecca L Charlton officer: SVP, Controller & CAO 17021 ALDINE WESTFIELD ROAD, HOUSTON TX 77073
Gregory D Brenneman director
Cynthia B Carroll director C/O ALCAN INC., 1188 SHERBROOKE STREET WEST, MONTREAL A8 H3A 3G2
Lynn Laverty Elsenhans director 6400 POPLAR AVENUE, MEMPHIS TN 38197
John G Rice director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
William G Beattie director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Michael R Dumais director 870 WINTER STREET, WALTHAM MA 02451
Mohsen Sohi director C/O STERIS CORPORATION, 5960 HEISLEY ROAD, MENTOR OH 44060
Nelda J Connors director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Kurt Camilleri officer: SVP/Controller/Chief Acctg Off 17021 ALDINE WESTFIELD ROAD, HOUSTON TX 77073