Baker Hughes Company — Earnings Quality Grade C
BKR · Energy
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 73 days, change -5 days YoY
AR growth -6.5% vs revenue growth -0.3%
Revenue -0.3%, CFFO 14.3%. Cash follows revenue
Expense Quality
Inventory 0.0% vs COGS -0.7%. Normal
CapEx growth -0.4% vs revenue -0.3%. Normal
SG&A/Gross Profit = 36.5%. Normal
Gross margin 23.6%, change +0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.47. Profits backed by cash
FCF $2.5B, FCF/NI = 0.98
Accruals ratio = -3.0%. Low accruals
Cash $3.7B covers 61% of debt $6.1B
Balance Sheet Health
Goodwill+Intangibles $10.2B = 54% of equity. Over 50%
Debt/EBITDA = 1.4x. Healthy
Other assets 0.1% vs revenue -0.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.68 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08