BorgWarner Inc (BWA)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 1,214,000 | 1,005,000 | 1,016,000 | 1,073,000 |
| Revenue (ttm) | US$ in thousands | 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 | 10,168,000 | 10,183,000 | 10,169,000 | 10,312,000 |
| Pretax margin | 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% | 11.94% | 9.87% | 9.99% | 10.41% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,010,000K ÷ $15,825,000K
= 6.38%
Based on the data provided, BorgWarner Inc's pretax margin has shown some fluctuations over the past eight quarters. The pretax margin ranged from 6.49% in Q2 2022 to 8.34% in Q4 2022.
It is important to note that the pretax margin is a key profitability ratio that indicates the company's efficiency in generating profits before taxes relative to its revenue. A higher pretax margin generally indicates that the company is effectively managing its expenses in relation to its revenue.
In the most recent quarters, there has been a general downward trend in the pretax margin, starting from 8.34% in Q4 2022 to 6.98% in Q4 2023. This downward trend may indicate potential issues with cost management or pricing strategies that could be impacting the company's profitability.
Further analysis would be needed to understand the specific factors driving these fluctuations in the pretax margin and to assess the overall financial health and performance of BorgWarner Inc.
Peer comparison
Dec 31, 2023