BorgWarner Inc (BWA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 914,000 | 1,236,000 | 687,000 | 897,000 | 1,214,000 |
| Revenue | US$ in thousands | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 | 10,168,000 |
| Pretax margin | 6.44% | 9.78% | 4.63% | 8.82% | 11.94% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $914,000K ÷ $14,198,000K
= 6.44%
BorgWarner Inc's pretax margin has exhibited fluctuations over the past five years. In 2019, the pretax margin was highest at 12.44%, indicating that the company was able to generate more profit before taxes relative to its total revenue during that period. However, the pretax margin has gradually decreased since then, with a significant drop to 5.32% in 2021.
The pretax margin slightly improved to 8.34% in 2022 but then declined again to 6.98% in 2023. This downward trend may suggest various factors affecting the company's profitability, such as changes in operating expenses, revenue growth, or the cost of goods sold.
Overall, BorgWarner Inc's pretax margin performance highlights the importance of closely monitoring and analyzing financial ratios to assess the company's operational efficiency and profitability over time.
Peer comparison
Dec 31, 2023