BorgWarner Inc (BWA)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 625,000 | 725,000 | 950,000 | 962,000 | 945,000 | 820,000 | 641,000 | 672,000 | 537,000 | 766,000 | 781,000 | 436,000 | 500,000 | 362,000 | 445,000 | 715,000 | 746,000 | 756,000 | 766,000 | 866,000 |
| Total stockholders’ equity | US$ in thousands | 5,828,000 | 5,768,000 | 7,551,000 | 7,441,000 | 7,224,000 | 6,775,000 | 6,889,000 | 7,050,000 | 6,948,000 | 6,646,000 | 6,649,000 | 6,367,000 | 6,428,000 | 4,757,000 | 4,611,000 | 4,724,000 | 4,706,000 | 4,457,000 | 4,394,000 | 4,274,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $625,000K ÷ $5,828,000K
= 10.72%
The Return on Equity (ROE) of BorgWarner Inc has shown variability over the past eight quarters, ranging from a low of 9.30% in Q2 2022 to a high of 13.07% in Q4 2022. ROE measures the company's ability to generate profit from shareholders' equity, reflecting how efficient management is in using equity to generate earnings growth.
Although there have been fluctuations in ROE, overall BorgWarner Inc has maintained a relatively stable ROE, with the most recent quarter at 10.72%. It is important to note that a consistently high ROE indicates effective utilization of equity to generate profits, while a declining ROE trend may raise concerns about the company's operational efficiency and profitability.
Further analysis, including comparing BorgWarner Inc's ROE with industry peers and examining the trends in net income, total equity, and other financial metrics, would provide a more comprehensive understanding of the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023