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Baker Hughes Co Altman Z-Score

: 1.13 (As of Today)
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Warning Sign:

Altman Z-score of 1.13 is in distress zone. This implies bankrupcy possibility in the next two years.

Baker Hughes Co has a Altman Z-Score of 1.13, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Baker Hughes Co's Altman Z-Score or its related term are showing as below:

NYSE:BKR' s Altman Z-Score Range Over the Past 10 Years
Min: -0.83   Med: 1.01   Max: 1.15
Current: 1.13

-0.83
1.15

During the past 6 years, Baker Hughes Co's highest Altman Z-Score was 1.15. The lowest was -0.83. And the median was 1.01.


Baker Hughes Co Altman Z-Score Historical Data

The historical data trend for Baker Hughes Co's Altman Z-Score 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
Altman Z-Score
Premium Member Only - 0.93 1.00 1.15 -0.46

Baker Hughes Co Quarterly Data
Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 -0.71 -0.83 -0.46 0.91 1.03

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Oil & Gas industry and Energy sector, Baker Hughes Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Baker Hughes Co's Altman Z-Score falls into.



Baker Hughes Co Altman Z-Score Calculation

Altman 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.

Baker Hughes Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1556+1.4*-0.2853+3.3*0.0289+0.6*1.1553+1.0*0.5582
=1.13

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $36,669 Mil.
Total Current Assets was $15,512 Mil.
Total Current Liabilities was $9,805 Mil.
Retained Earnings was $-10,462 Mil.
Pre-Tax Income was 66 + -536 + 1520 + -264 = $786 Mil.
Interest Expense was -65 + -74 + -69 + -66 = $-274 Mil.
Revenue was 5142 + 4782 + 5495 + 5049 = $20,468 Mil.
Market Cap (Today) was $22,261 Mil.
Total Liabilities was $19,269 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(15512 - 9805)/36669
=0.1556

X2=Retained Earnings/Total Assets
=-10462/36669
=-0.2853

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(786 - -274)/36669
=0.0289

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=22261.449/19269
=1.1553

X5=Revenue/Total Assets
=20468/36669
=0.5582

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Baker Hughes Co has a Altman Z-Score of 1.13 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Baker Hughes Co  (NYSE:BKR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Baker Hughes Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Baker Hughes Co's Altman Z-Score 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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