uploads///BHGE

Analyzing Baker Hughes’s Net Debt-To-Equity

By

Apr. 11 2018, Updated 4:35 p.m. ET

BHGE’s net debt

In 2017, net debt for Baker Hughes, a GE company (BHGE) was $1.4 billion, rising 176% from its net debt of -$1.6 billion in 2016. While Baker Hughes was nearly debt-free before the merger with GE Oil & Gas, its long-term debt is now ~$6.3 billion and its short-term debt is $2.0 billion. As of December 31, 2017, BHGE had cash and marketable securities of $7.0 billion, and ~$3.2 billion of BHGE’s cash and equivalents were held by foreign subsidiaries. Despite having higher cash and equivalents, BHGE’s net debt turned positive in 2017 due to its total debt rising.

Article continues below advertisement

BHGE’s shareholder equity

Between 2016 and 2017, Baker Hughes’s shareholder equity rose 210% due to a $7.4 billion cash contribution received from GE and $24.8 billion in Class A common stock being issued following its acquisition by GE.

BHGE’s net debt-to-equity ratio

BHGE’s positive net debt led to its net debt-to-equity ratio turning positive in 2017, switching from -0.12x to 0.03x. BHGE’s net debt-to-equity ratio has been negative in only one of the past five years. BHGE accounts for 5.6% of the iShares US Oil Equipment & Services ETF (IEZ), which tracks an index composed of US equities in the oil equipment and service sector. In the past year, IEZ has fallen 24%, whereas BHGE has fallen 32%.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!

Advertisement

More From Market Realist

  • People at a gas station
    Energy & Utilities
    Best Gas Stocks to Buy After the Colonial Pipeline Attack
  • Recon Africa employees
    Energy & Utilities
    Is Recon Africa a Multi Bagger Stock You Should Buy?
  • Dr. Donald Sadoway (second from left) pictured with Paula S. Aspell, David Pogue, and Chris Schmidt
    Energy & Utilities
    Ambri Expands in the Liquid Metal Battery Space, Still Privately Held
  • Valero gas station
    Energy & Utilities
    Valero Energy’s Prospects in 2021, Rebound in Energy and Gas
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.