BorgWarner Inc (BWA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.29% | 10.60% | 12.25% | 13.98% | 16.23% | 19.90% | 19.20% | 20.31% | 21.77% | 17.59% | 18.61% | 18.90% | 19.19% | 19.83% | 20.12% | 19.16% | 18.78% | 19.12% | 19.30% | 20.53% |
| Operating profit margin | 2.12% | 4.62% | 5.31% | 6.27% | 7.33% | 9.15% | 8.92% | 8.96% | 9.61% | 6.97% | 7.17% | 7.46% | 7.74% | 7.84% | 8.54% | 6.91% | 6.08% | 10.02% | 9.98% | 12.52% |
| 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% |
| Net profit margin | 1.31% | 3.62% | 3.31% | 3.26% | 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% |
BorgWarner Inc's profitability ratios have exhibited various trends over the past few years. The gross profit margin fluctuated between 18.61% and 21.77% during the period analyzed, showing some volatility but generally maintaining levels above 18%.
The operating profit margin experienced a decreasing trend, starting at 12.52% in March 2020 and declining to 2.12% by December 2024. This indicates a significant reduction in the company's profitability from its operational activities over the years.
The pretax margin also displayed a downward trajectory, moving from 11.55% in March 2020 to 1.75% by December 2024. This trend suggests challenges in managing operating expenses and generating profits before taxes.
Similarly, the net profit margin declined from 7.24% in March 2020 to 1.31% by December 2024. This indicates a decrease in the company's profitability after accounting for all expenses and taxes.
Overall, BorgWarner Inc's profitability has faced challenges, as seen in the declining trends of both operating profit margin, pretax margin, and net profit margin over the analyzed period. It may be important for the company to focus on cost management, revenue generation, and overall efficiency to improve its profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.90% | 7.55% | 8.12% | 8.36% | 8.03% | 10.70% | 8.67% | 8.42% | 8.94% | 6.64% | 6.53% | 6.60% | 6.94% | 7.20% | 7.22% | 5.15% | 3.86% | 8.10% | 8.46% | 13.02% |
| Return on assets (ROA) | 2.42% | 5.93% | 5.05% | 4.35% | 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% |
| Return on total capital | 5.87% | 11.04% | 12.21% | 13.47% | 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% |
| Return on equity (ROE) | 6.11% | 14.57% | 11.70% | 10.51% | 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% |
BorgWarner Inc's profitability ratios show a mixed performance over the analyzed period.
- "Operating return on assets" fluctuated between 3.86% and 10.70%, with a generally upward trend from the end of 2022 to the third quarter of 2023, after which it decreased slightly towards the end of 2024.
- "Return on assets" varied between 2.42% and 5.93%, showing a generally upward trend from the first quarter of 2021 to the third quarter of 2023, followed by a slight decline by the end of 2024.
- "Return on total capital" ranged from 5.87% to 17.23%, with an upward trajectory from the end of 2022 to the third quarter of 2023 before decreasing towards the end of 2024.
- "Return on equity" saw fluctuations between 6.11% and 15.14%, with a noticeable increase from the first quarter of 2022 to the third quarter of 2024.
Overall, while BorgWarner Inc experienced some fluctuations in profitability ratios, there were periods of improvement in profitability metrics like return on assets, return on equity, and return on total capital. The trend in these ratios indicates the company's ability to generate earnings relative to its assets, equity, and invested capital, despite some variability in performance over time.