BorgWarner Inc (BWA)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 449,000 | 1,000,000 | 936,000 | 974,000 | 1,010,000 | 1,167,000 | 1,325,000 | 1,288,000 | 1,275,000 | 1,035,000 | 869,000 | 871,000 | 687,000 | 1,126,000 | 1,205,000 | 826,000 | 897,000 | 786,000 | 792,000 | 1,141,000 |
| Revenue (ttm) | US$ in thousands | 25,729,000 | 24,766,000 | 21,544,000 | 18,850,000 | 15,825,000 | 16,484,000 | 16,848,000 | 16,082,000 | 15,805,000 | 15,319,000 | 14,706,000 | 14,749,000 | 14,878,000 | 15,140,000 | 14,258,000 | 11,904,000 | 10,171,000 | 8,803,000 | 8,757,000 | 9,881,000 |
| Pretax margin | 1.75% | 4.04% | 4.34% | 5.17% | 6.38% | 7.08% | 7.86% | 8.01% | 8.07% | 6.76% | 5.91% | 5.91% | 4.62% | 7.44% | 8.45% | 6.94% | 8.82% | 8.93% | 9.04% | 11.55% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $449,000K ÷ $25,729,000K
= 1.75%
BorgWarner Inc's pretax margin has shown some fluctuation over the years, ranging from a high of 11.55% in March 2020 to a low of 1.75% in December 2024. The trend suggests a general downward trajectory with some periods of temporary upticks.
The company's pretax margin decreased steadily from March 2021 to December 2021, indicating a potential decline in profitability during that period. However, there was a slight improvement in the pretax margin in the following quarters of March 2022 and June 2022.
Subsequently, the pretax margin fluctuated around the 7-8% range from September 2022 to March 2023 before showing a decline in the following quarters. The trend continued with pretax margin dropping to below 5% in June 2024 and further decreasing to 1.75% by the end of December 2024.
Overall, BorgWarner Inc's pretax margin performance indicates periods of both stability and volatility, with a gradual downward trend in recent years which might be a concern for investors and stakeholders.
Peer comparison
Dec 31, 2024