BorgWarner Inc (BWA)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 625,000 | 944,000 | 537,000 | 500,000 | 746,000 |
| Revenue | US$ in thousands | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 | 10,168,000 |
| Net profit margin | 4.40% | 7.47% | 3.62% | 4.92% | 7.34% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $625,000K ÷ $14,198,000K
= 4.40%
Over the past five years, BorgWarner Inc's net profit margin has fluctuated. In 2019, the company achieved a relatively high net profit margin of 7.34%, indicating that for every dollar of revenue generated, BorgWarner retained $0.0734 as net income. However, this figure declined to 4.92% in 2020 before slightly recovering to 3.62% in 2021. In 2022, the net profit margin improved to 5.97% but dropped again to 4.40% in 2023.
The decreasing trend in the net profit margin over the past two years may signify challenges in managing costs and sustaining profitability relative to revenue. This could be attributed to factors such as increasing production costs, pricing pressures, or variations in sales volumes. It is crucial for BorgWarner to closely monitor and address these factors to enhance its operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023