Is Baker Hughes (BKR) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 10.3% / 30% | 6.3% / 30% | 11.2% / 30% | 1.65% / 5% | ✓ HALAL |
| DJIM | 10.3% / 33% | 6.3% / 33% | 11.2% / 33% | 1.65% / 5% | ✓ HALAL |
| MSCI | 14.9% / 33% | 9.1% / 33% | 16.2% / 33% | 1.65% / 5% | ✓ HALAL |
| S&P | 10.3% / 33% | 6.3% / 33% | 11.2% / 33% | 1.65% / 5% | ✓ HALAL |
| FTSE | 14.9% / 33% | 9.1% / 33% | 16.2% / 50% | 1.65% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 23.7% | |
| Operating Margin | 12.5% | |
| Net Margin | 9.3% | |
| Return on Equity (ROE) | 14.6% | |
| Return on Assets (ROA) | 5.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.8B |
| Free Cash Flow | $2.5B |
| Total Debt | $6.1B |
| Debt-to-Equity | 35.3 |
| Current Ratio | 1.4 |
| Total Assets | $40.9B |
Price & Trading
| Last Close | $62.36 |
| 50-Day MA | $59.26 |
| 200-Day MA | $48.82 |
| Avg Volume | 9.7M |
| Beta | 0.9 |
|
52-Week Range
$33.60
| |
About Baker Hughes (BKR)
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company's Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company has a collaboration with Google Cloud to develop advanced AI-enabled power optimization and sustainability solutions for the global data center sector. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.
Purification Calculator
As a halal stock with 1.65% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Baker Hughes (BKR) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Baker Hughes is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Baker Hughes's debt ratio?
Baker Hughes's debt ratio is 10.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.9%.
Does Baker Hughes require dividend purification?
Yes, Baker Hughes has an impermissible income ratio of 1.65%, which means 1.65% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Baker Hughes's key financial metrics?
Baker Hughes has a market capitalization of $62.5B, trailing P/E ratio of 24.3, and revenue of $27.7B. The company maintains a gross margin of 23.7% and a net margin of 9.3%. Return on equity stands at 14.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.