BorgWarner Inc (BWA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 625,000 | 944,000 | 537,000 | 500,000 | 746,000 |
| Total stockholders’ equity | US$ in thousands | 5,828,000 | 7,224,000 | 6,948,000 | 6,428,000 | 4,706,000 |
| ROE | 10.72% | 13.07% | 7.73% | 7.78% | 15.85% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $625,000K ÷ $5,828,000K
= 10.72%
BorgWarner Inc's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE stood at 10.72% as of December 31, 2023, down from the prior year's figure of 13.07%. This decline may indicate a decreased profitability in generating returns for shareholders compared to the previous year.
In 2021 and 2020, the ROE was 7.73% and 7.78%, respectively, reflecting relatively lower returns on equity during those periods. However, the company experienced a significant ROE of 15.85% in 2019, suggesting a strong performance in generating profits relative to shareholders' equity.
Overall, BorgWarner Inc's ROE trend indicates some variability in its profitability and efficiency in leveraging shareholder equity to generate returns over the past five years. Further analysis of the company's financial performance and underlying factors driving these fluctuations would provide more insights into its financial health and operational effectiveness.
Peer comparison
Dec 31, 2023