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Baker Hughes (XSWX:BHI) Return-on-Tangible-Equity : -6.26% (As of Mar. 2017)


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What is Baker Hughes Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Baker Hughes's annualized net income for the quarter that ended in Mar. 2017 was CHF-517 Mil. Baker Hughes's average shareholder tangible equity for the quarter that ended in Mar. 2017 was CHF8,257 Mil. Therefore, Baker Hughes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 was -6.26%.

The historical rank and industry rank for Baker Hughes's Return-on-Tangible-Equity or its related term are showing as below:

XSWX:BHI's Return-on-Tangible-Equity is not ranked *
in the Oil & Gas industry.
Industry Median: 8.03
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Baker Hughes Return-on-Tangible-Equity Historical Data

The historical data trend for Baker Hughes's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Baker Hughes Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.89 10.29 15.86 -18.61 -30.99

Baker Hughes Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 -42.47 -40.46 -19.38 -20.34 -6.26

Competitive Comparison of Baker Hughes's Return-on-Tangible-Equity

For the Oil & Gas Equipment & Services subindustry, Baker Hughes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Baker Hughes's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Baker Hughes's Return-on-Tangible-Equity falls into.



Baker Hughes Return-on-Tangible-Equity Calculation

Baker Hughes's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=-2791.117/( (9597.74+8414.127 )/ 2 )
=-2791.117/9005.9335
=-30.99 %

Baker Hughes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=-516.776/( (8414.127+8099.131)/ 2 )
=-516.776/8256.629
=-6.26 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2017) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Baker Hughes  (XSWX:BHI) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Baker Hughes Return-on-Tangible-Equity Related Terms

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Baker Hughes (XSWX:BHI) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Baker Hughes is one of the world's largest integrated oil services providers. Its largest end market is North America, and thus its fortunes are strongly leveraged to U.S. shale activity. By the end of 2017, the firm is set to combine with General Electric's oil and gas division, which is more leveraged to offshore developments, as well as nonupstream energy markets such as liquefied natural gas and refining.

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