Explain this page
Arphra AIPlain-English read on Baker Hughes Company’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
BMixed
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin23.6%
Operating margin12.8%
Net margin9.3%
ROE13.6%
ROA6.3%
ROIC14.5%
Liquidity & leverage
Current ratio1.36×
Quick ratio1.00×
Debt / equity0.38×
Net debt / EBITDA0.80×
Interest coverage16×
Efficiency & per-share
Asset turnover0.68×
Inventory days85
Days sales out.87
FCF / share$2.55
Book value / share$19.12
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $41.01B | $44.99B | — | — | — | — |
| Enterprise value | — | — | — | $43.67B | $48.42B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 1.57 | 1.75 | — | — | — | — |
| EV / FCF | — | — | — | 21.26 | 19.09 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +7.26% | +5.75% | — | — | — | — |
| Free cash flow yield | — | — | — | +5.01% | +5.64% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +22.15% | +23.43% | +23.14% | +23.30% | +23.60% | +23.11% | +23.53% | +22.90% | +22.75% |
| Operating margin | +6.39% | +8.93% | +10.35% | +12.15% | +12.83% | +11.76% | +11.55% | +11.79% | +11.66% |
| EBITDA margin | +8.94% | +6.31% | +15.52% | +16.53% | +15.46% | +15.97% | +15.71% | +16.26% | +15.40% |
| EBIT margin | +3.55% | +1.30% | +11.26% | +12.44% | +11.17% | +11.51% | +11.57% | +11.29% | +11.73% |
| Pre-tax margin | +2.09% | +0.10% | +10.41% | +11.73% | +10.37% | +11.05% | +10.74% | +10.69% | +10.56% |
| Net margin | -1.07% | -2.84% | +7.62% | +10.70% | +9.33% | +9.48% | +9.30% | +9.09% | +9.24% |
| Cost structure | |||||||||
| Cost of revenue / sales | +77.85% | +76.57% | +76.86% | +76.70% | +76.40% | +74.40% | +74.62% | +74.71% | +78.44% |
| R&D intensity | +2.40% | +2.63% | +2.58% | +2.31% | +2.16% | +2.35% | +2.30% | +2.30% | +2.28% |
| SG&A intensity | +12.05% | +11.86% | +10.24% | +8.83% | +8.61% | +9.11% | +9.26% | +9.18% | +9.25% |
| Effective tax rate | +177.10% | +2727.27% | +25.80% | +7.87% | +8.79% | +13.50% | +14.02% | +14.22% | +14.29% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | -1.31% | -4.14% | +12.52% | +17.47% | +13.61% | +14.75% | +14.71% | +14.04% | +14.18% |
| Return on assets (ROA) | -0.62% | -1.76% | +5.26% | +7.77% | +6.33% | +6.73% | +6.51% | +6.28% | +6.60% |
| Return on capital (ROC) | +5.58% | +8.92% | +12.26% | +14.65% | +13.60% | +13.46% | +13.39% | +13.23% | +13.11% |
| Return on invested capital (ROIC) | +4.19% | +6.69% | +9.02% | +12.91% | +9.90% | +10.85% | +10.78% | +10.20% | +10.39% |
| Asset turnover | +58.00% | +61.89% | +69.04% | +72.54% | +67.84% | +70.96% | +69.98% | +69.10% | +71.44% |
| DuPont · ROE decomposition | |||||||||
| Net margin | -1.07% | -2.84% | +7.62% | +10.70% | +9.33% | +9.48% | +9.30% | +9.09% | +9.24% |
| Asset turnover (× revenue / assets) | +58.00% | +61.89% | +69.04% | +72.54% | +67.84% | +70.96% | +69.98% | +69.10% | +71.44% |
| Equity multiplier (× assets / equity) | +211.08% | +235.33% | +238.06% | +224.94% | +215.05% | +219.34% | +225.92% | +223.46% | +214.81% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.58 | 0.62 | 0.69 | 0.73 | 0.68 | 0.71 | 0.70 | 0.69 | 0.71 |
| Fixed-asset turnover | 4.20 | 4.66 | 5.21 | 5.43 | 4.66 | — | — | — | — |
| Inventory turnover | 4.01 | 3.53 | 3.85 | 4.31 | 4.28 | — | — | — | — |
| Receivables turnover | 3.63 | 3.55 | 3.61 | 3.91 | 4.18 | — | — | — | — |
| Payables turnover | 4.26 | 3.77 | 4.38 | 4.70 | 4.63 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 100.61 | 102.79 | 101.25 | 93.41 | 87.40 | — | — | — | — |
| Days inventory outstanding (DIO) | 90.99 | 103.35 | 94.84 | 84.71 | 85.34 | — | — | — | — |
| Days payables outstanding (DPO) | 85.64 | 96.84 | 83.24 | 77.66 | 78.88 | — | — | — | — |
| Cash conversion cycle | 105.96 | 109.30 | 112.85 | 100.46 | 93.86 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | -10.84 | -3.14 | 1.58 | 1.12 | 1.47 | 1.33 | 1.38 | 1.35 | 1.35 |
| FCF / Net income | -8.37 | -1.86 | 0.95 | 0.69 | 0.98 | 0.82 | 0.88 | 0.87 | 0.83 |
| FCF margin | +8.94% | +5.28% | +7.21% | +7.38% | +9.15% | +7.79% | +8.14% | +7.89% | +7.69% |
| OCF margin | +11.58% | +8.92% | +12.01% | +11.97% | +13.74% | +12.65% | +12.85% | +12.30% | +12.44% |
| CapEx / Revenue | +2.64% | +3.65% | +4.80% | +4.59% | +4.59% | +4.52% | +4.61% | +4.72% | +4.54% |
| CapEx / D&A | 0.49 | 0.73 | 1.13 | 1.13 | 1.07 | — | — | — | — |
| Stock-based comp / Revenue | +1.00% | +0.98% | +0.77% | +0.73% | +0.73% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | -0.27 | -0.61 | 1.91 | 2.98 | 2.60 | 2.39 | 2.86 | 3.27 | 3.18 |
| EPS · basic | -0.27 | -0.61 | 1.93 | 3.00 | 2.62 | 2.42 | 2.87 | 3.31 | 3.25 |
| Book value / share | 20.32 | 14.72 | 15.29 | 17.04 | 19.12 | 17.91 | 19.03 | 19.88 | 20.56 |
| Tangible BV / share | 8.08 | 4.47 | 5.21 | 7.02 | 8.90 | 17.91 | 19.03 | 19.88 | 20.56 |
| Sales / share | 24.88 | 21.43 | 25.13 | 27.80 | 27.90 | 27.87 | 30.08 | 30.69 | 31.56 |
| Operating CF / share | 2.88 | 1.91 | 3.02 | 3.33 | 3.83 | 3.53 | 3.86 | 3.78 | 3.92 |
| Free cash flow / share | 2.22 | 1.13 | 1.81 | 2.05 | 2.55 | 2.17 | 2.45 | 2.42 | 2.43 |
| Dividends / share | 0.72 | 0.74 | 0.77 | 0.84 | 0.92 | 0.89 | 0.96 | 0.98 | 0.97 |
| Payout ratio | -270.32% | -120.80% | +40.45% | +28.06% | +35.16% | +33.80% | +34.44% | +35.10% | +33.41% |
| Retention ratio | +370.32% | +220.80% | +59.55% | +71.94% | +64.84% | +66.20% | +65.56% | +64.90% | +66.59% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +3.19% | +20.56% | +9.11% | -0.34% | -0.63% | +7.86% | +3.56% | +0.91% | +5.33% |
| Gross profit · YoY | — | +9.14% | +19.09% | +9.84% | +0.94% | -2.69% | +9.83% | +0.78% | +0.24% | +5.68% |
| Profit | ||||||||||
| Operating income · YoY | — | +44.27% | +39.68% | +28.11% | +5.17% | -8.87% | +5.91% | +5.70% | -0.20% | +13.55% |
| EBITDA · YoY | — | -27.13% | +196.48% | +16.20% | -6.78% | +2.69% | +6.05% | +7.21% | -4.45% | +12.75% |
| Net income · YoY | — | -174.43% | +423.29% | +53.32% | -13.13% | +0.93% | +5.87% | +1.22% | +2.54% | — |
| Operating | ||||||||||
| EBIT · YoY | — | -62.31% | +947.81% | +20.62% | -10.51% | +2.32% | +8.43% | +1.09% | +4.81% | +22.32% |
| R&D · YoY | — | +13.01% | +18.35% | -2.28% | -6.69% | +8.03% | +5.37% | +3.64% | +0.18% | +4.68% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -125.93% | +413.11% | +56.02% | -12.75% | -8.17% | +19.84% | +14.30% | -2.76% | — |
| EPS · basic · YoY | — | -125.93% | +416.39% | +55.44% | -12.67% | -7.74% | +18.68% | +15.53% | -1.94% | — |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $6.73B | $6.66B | $6.02B | $6.02B | $7.14B | $6.38B | $6.84B | $7.5B | $7.38B |
| Net debt | $2.87B | $4.17B | $3.38B | $2.66B | $3.43B | $3.04B | $3.3B | $3.8B | $3.59B |
| Net debt / EBITDA | 1.57 | 3.12 | 0.85 | 0.58 | 0.80 | 0.69 | 0.71 | 0.76 | 0.75 |
| Debt / equity | 0.40 | 0.46 | 0.39 | 0.35 | 0.38 | 0.36 | 0.36 | 0.38 | 0.36 |
| Debt / assets | +19.03% | +19.48% | +16.30% | +15.70% | +17.48% | +16.41% | +16.10% | +16.83% | +16.98% |
| Equity / assets | +47.37% | +42.49% | +42.01% | +44.46% | +46.50% | +45.59% | +44.26% | +44.75% | +46.55% |
| Coverage | |||||||||
| EBITDA / interest expense | 6.13 | 5.30 | 18.32 | 23.23 | 19.31 | 20.77 | 19.58 | 20.23 | 19.13 |
| Operating income / interest | 4.38 | 7.50 | 12.22 | 17.08 | 16.02 | 15.29 | 14.40 | 14.66 | 14.49 |
| Interest expense | $299M | $252M | $216M | $198M | $222M | $212M | $238.39M | $247.46M | $250.02M |
| Liquidity | |||||||||
| Current ratio | 1.65 | 1.32 | 1.25 | 1.32 | 1.36 | — | — | — | — |
| Quick ratio | 1.04 | 0.76 | 0.75 | 0.81 | 0.84 | — | — | — | — |
| Cash ratio | 0.42 | 0.22 | 0.20 | 0.26 | 0.27 | — | — | — | — |
| Working capital | $5.94B | $3.52B | $3.31B | $4.22B | $4.95B | — | — | — | — |
| Working capital / revenue | +28.96% | +16.62% | +12.98% | +15.16% | +17.85% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 1.75x | 1.57x |
| Earnings yield | 5.8% | 7.3% |
| FCF yield | 5.6% | 5.0% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 13.7% | 17.6% |
| ROA | 6.3% | 7.8% |
| ROIC | 11.6% | 12.3% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.80 | 0.58 |
| Interest coverage | — | — |
| Current ratio | 1.36x | 1.32x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).