BorgWarner Inc (BWA)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,160,000 | 1,009,000 | 1,151,000 | 618,000 | 1,303,000 |
| Revenue | US$ in thousands | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 | 10,168,000 |
| Operating profit margin | 8.17% | 7.99% | 7.76% | 6.08% | 12.81% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,160,000K ÷ $14,198,000K
= 8.17%
The operating profit margin of BorgWarner Inc has shown a slight decrease over the past five years, declining from 12.08% in 2019 to 8.82% in 2023. This downward trend indicates that the company's ability to generate profits from its core operations has weakened over time. The most significant drop occurred between 2019 and 2020, falling from 12.08% to 9.43%, which suggests a possible adverse impact on profitability in that period. Despite a slight fluctuation in margins in the following years, the overall trend has been a gradual decline in operating profit margin. This could be a cause for concern as it indicates a potential inefficiency or increased costs within the company's operations, which may require further investigation and strategic planning to reverse this trend and improve profitability.
Peer comparison
Dec 31, 2023