BorgWarner Inc (BWA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.51% | 22.09% | 21.34% | 21.39% | 21.77% | 17.59% | 18.61% | 18.90% | 19.19% | 19.83% | 20.12% | 19.16% | 18.78% | 19.12% | 19.30% | 20.53% | 20.66% | 20.62% | 20.56% | 20.93% |
| Operating profit margin | 8.06% | 9.86% | 9.60% | 9.37% | 9.61% | 6.97% | 7.17% | 7.46% | 7.74% | 7.84% | 8.54% | 6.91% | 6.08% | 10.02% | 9.98% | 12.52% | 12.81% | 10.71% | 10.75% | 10.87% |
| 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% |
| Net profit margin | 3.95% | 4.40% | 5.64% | 5.98% | 5.98% | 5.35% | 4.36% | 4.56% | 3.61% | 5.06% | 5.48% | 3.66% | 4.92% | 4.11% | 5.08% | 7.24% | 7.34% | 7.42% | 7.53% | 8.40% |
BorgWarner Inc's profitability ratios exhibit some fluctuations over the quarters provided. The gross profit margin has gradually decreased from 19.63% in Q4 2022 to 18.09% in Q4 2023, indicating a decline in the proportion of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also experienced some variation, with a peak of 9.62% in Q2 2023 and a low of 8.41% in Q3 2022. This metric reflects the company's ability to generate profits from its core operations, with some quarters showing improved efficiency and others demonstrating a slight decrease.
The pretax margin has shown an overall increasing trend from 6.49% in Q2 2022 to 8.06% in Q2 2023 before declining slightly to 6.98% in Q4 2023. This ratio indicates BorgWarner's ability to control operating expenses and interest payments relative to its total revenue before taxes.
Net profit margin, which represents the percentage of revenue that translates into profit after all expenses, displays fluctuations over the quarters provided. The highest net profit margin of 5.97% was achieved in Q1 2023, while the lowest margin of 4.36% was recorded in Q2 2022. This ratio reflects the company's overall profitability after considering all costs and expenses.
In summary, BorgWarner Inc's profitability ratios have shown variability over the quarters, with some quarters demonstrating improvements in profitability while others showing slight declines. It is essential for the company to carefully monitor and manage its costs and expenses to maintain and enhance profitability levels consistently.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.83% | 11.52% | 9.34% | 8.80% | 8.94% | 6.64% | 6.53% | 6.60% | 6.94% | 7.20% | 7.22% | 5.15% | 3.86% | 8.10% | 8.46% | 13.02% | 13.43% | 10.70% | 10.68% | 11.09% |
| Return on assets (ROA) | 4.32% | 5.14% | 5.49% | 5.62% | 5.56% | 5.10% | 3.97% | 4.03% | 3.24% | 4.64% | 4.63% | 2.73% | 3.12% | 3.32% | 4.30% | 7.52% | 7.69% | 7.41% | 7.49% | 8.57% |
| Return on total capital | 13.38% | 17.23% | 13.78% | 12.97% | 13.37% | 9.83% | 9.55% | 9.76% | 10.27% | 10.86% | 11.08% | 8.17% | 6.08% | 11.69% | 11.85% | 19.36% | 20.42% | 17.85% | 17.29% | 18.09% |
| Return on equity (ROE) | 10.72% | 12.57% | 12.58% | 12.93% | 13.08% | 12.10% | 9.30% | 9.53% | 7.73% | 11.53% | 11.75% | 6.85% | 7.78% | 7.61% | 9.65% | 15.14% | 15.85% | 16.96% | 17.43% | 20.26% |
BorgWarner Inc's profitability ratios have shown a mixed performance over the past eight quarters.
Operating return on assets (Operating ROA) has ranged from 7.66% to 10.89%, with an average of approximately 8.93%. This ratio indicates the company's ability to generate profits from its assets before interest and taxes. The fluctuations in Operating ROA may reflect changes in the company's operating efficiency and asset utilization.
Return on assets (ROA) has ranged from 3.97% to 5.61%, with an average of around 4.91%. ROA measures the company's ability to generate profits from its total assets. The variability in ROA suggests fluctuations in the company's overall profitability and efficiency in asset management.
Return on total capital has fluctuated between 11.48% and 16.56%, averaging at approximately 13.46%. This ratio shows the company's ability to generate returns for both equity and debt holders. The variations in Return on total capital may reflect changes in the company's overall financial performance.
Return on equity (ROE) has ranged from 9.30% to 13.07%, averaging around 11.95%. ROE indicates the company's ability to generate profits from shareholders' equity. The fluctuations in ROE suggest changes in the company's profitability and effectiveness in utilizing shareholders' investment.
Overall, BorgWarner Inc's profitability ratios show a fluctuating trend, indicating varying levels of profitability and efficiency in asset utilization and capital management over the analyzed period. Additional analysis would be required to understand the underlying drivers of these fluctuations and assess the company's overall financial performance.