Baker Hughes (XSWX:BHI) ROCE % : -0.71% (As of Mar. 2017)

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What is Baker Hughes ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Baker Hughes's annualized ROCE % for the quarter that ended in Mar. 2017 was -0.71%.

Baker Hughes ROCE % Historical Data

The historical data trend for Baker Hughes's ROCE % 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.

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Baker Hughes ROCE % Chart

Baker Hughes Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROCE %

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9.92

8.36

12.54

-10.65

-8.65

Baker Hughes Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
ROCE %	Get a 7-Day Free Trial															-10.63	-11.78	-7.30	-4.17	-0.71

Baker Hughes ROCE % Calculation

Baker Hughes's annualized ROCE % for the fiscal year that ended in Dec. 2016 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	-1654.486	/	( ( (23962.008 - 2761.403)	+	(19403.26 - 2348.698) )	/ 2 )
	=	-1654.486	/	( (21200.605	+	17054.562)	/ 2 )
	=	-1654.486	/	19127.5835
	=	-8.65 %

Baker Hughes's ROCE % of for the quarter that ended in Mar. 2017 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2017 )		(Q: Dec. 2016 )		(Q: Mar. 2017 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2017 )		(Q: Dec. 2016 )		(Q: Mar. 2017 )
	=	-120.18	/	( ( (19403.26 - 2348.698)	+	(18704.014 - 2133.195) )	/ 2 )
	=	-120.18	/	( ( 17054.562	+	16570.819 )	/ 2 )
	=	-120.18	/	16812.6905
	=	-0.71 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2017) EBIT data.

Baker Hughes (XSWX:BHI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Baker Hughes (XSWX:BHI) Business Description

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http://www.bakerhughes.com

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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