BorgWarner Inc (BWA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.09% | 18.75% | 19.24% | 18.79% | 20.66% |
| Operating profit margin | 8.17% | 7.99% | 7.76% | 6.08% | 12.81% |
| Pretax margin | 6.44% | 9.78% | 4.63% | 8.82% | 11.94% |
| Net profit margin | 4.40% | 7.47% | 3.62% | 4.92% | 7.34% |
BorgWarner Inc's profitability ratios have exhibited some fluctuations over the past five years. The gross profit margin has shown a general declining trend, decreasing from 20.66% in 2019 to 18.09% in 2023. This indicates that the company's ability to generate profits from its core operations has weakened over time.
Similarly, the operating profit margin has also experienced a downward trajectory, falling from 12.08% in 2019 to 8.82% in 2023. This suggests that BorgWarner's operating efficiency and cost management may have faced challenges in recent years.
The pretax margin followed a mixed pattern, with a notable decline in 2021 before recovering slightly in 2022 and then decreasing again in 2023. This volatility could indicate fluctuations in BorgWarner's pre-tax profitability and operational performance.
The net profit margin has shown a similar trend, declining from 7.34% in 2019 to 4.40% in 2023. This indicates a decrease in BorgWarner's overall profitability after accounting for all expenses and taxes.
Overall, BorgWarner's profitability ratios suggest a declining trend in profitability and efficiency over the past five years, indicating potential challenges in maintaining and growing its bottom line. Further analysis of the company's financial and operational strategies may be necessary to address these trends and enhance its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.03% | 5.94% | 6.94% | 3.86% | 13.43% |
| Return on assets (ROA) | 4.32% | 5.55% | 3.24% | 3.12% | 7.69% |
| Return on total capital | 12.17% | 12.09% | 10.27% | 6.08% | 20.42% |
| Return on equity (ROE) | 10.72% | 13.07% | 7.73% | 7.78% | 15.85% |
BorgWarner Inc's profitability ratios show fluctuating performance over the past five years.
- Operating return on assets (Operating ROA) remained relatively stable, ranging from 5.98% in 2020 to 8.77% in 2022, before decreasing slightly to 8.66% in 2023. This ratio indicates the company's ability to generate profits from its assets before considering interest and taxes.
- Return on assets (ROA) shows a more significant variance, starting at 3.12% in 2019, peaking at 5.55% in 2022, and then dropping to 4.32% in 2023. ROA measures the company's efficiency in using its assets to generate profits.
- Return on total capital reflects a similar trend to ROA, with a range from 9.56% in 2020 to 13.35% in 2022, leveling off at 13.34% in 2023. This ratio evaluates the company's ability to generate returns from all sources of capital.
- Return on equity (ROE) fluctuated notably, from 7.73% in 2021 to 13.07% in 2022, and then declining to 10.72% in 2023. ROE measures the company's profitability relative to the shareholders' equity.
In conclusion, BorgWarner Inc's profitability ratios exhibit variability in performance over the analyzed period, with notable peaks and declines in certain years. The company's ability to generate profits from its assets and equity has shown mixed results, indicating the need for further analysis to understand the underlying factors driving these fluctuations.