GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » BorgWarner Inc (NYSE:BWA) » Definitions » Gross Profit

BorgWarner (BorgWarner) Gross Profit

: $2,929 Mil (TTM As of Dec. 2023)
View and export this data going back to 1993. Start your Free Trial

BorgWarner's gross profit for the three months ended in Dec. 2023 was $659 Mil. BorgWarner's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $2,929 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. BorgWarner's gross profit for the three months ended in Dec. 2023 was $659 Mil. BorgWarner's Revenue for the three months ended in Dec. 2023 was $3,522 Mil. Therefore, BorgWarner's Gross Margin % for the quarter that ended in Dec. 2023 was 18.71%.

BorgWarner had a gross margin of 18.71% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of BorgWarner was 21.58%. The lowest was 18.09%. And the median was 20.91%.

Warning Sign:

BorgWarner Inc gross margin has been in long-term decline. The average rate of decline per year is -3.1%.


BorgWarner Gross Profit Historical Data

The historical data trend for BorgWarner's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BorgWarner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,101.00 1,910.00 2,173.00 2,369.00 2,568.00

BorgWarner Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 639.00 750.00 868.00 652.00 659.00

Competitive Comparison

For the Auto Parts subindustry, BorgWarner's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BorgWarner Gross Profit Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Gross Profit distribution charts can be found below:

* The bar in red indicates where BorgWarner's Gross Profit falls into.



BorgWarner Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

BorgWarner's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=14198 - 11630
=2,568

BorgWarner's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )=Revenue - Cost of Goods Sold
=3522 - 2863
=659

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,929 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

BorgWarner's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=659 / 3522
=18.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


BorgWarner  (NYSE:BWA) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

BorgWarner had a gross margin of 18.71% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


BorgWarner Gross Profit Related Terms

Thank you for viewing the detailed overview of BorgWarner's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.


BorgWarner (BorgWarner) Business Description

Traded in Other Exchanges
Address
3850 Hamlin Road, Auburn Hills, MI, USA, 48326
BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.
Executives
Stefan Demmerle officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Joseph F. Fadool officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Alexis P Michas director 940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Tonit M Calaway officer: EVP and Chief HR Officer HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Isabelle Mckenzie officer: Vice President 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Tania Wingfield officer: EVP & CHRO 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Daniel Etue officer: VP & Controller 3850 W. HAMLIN RD, AUBURN HILLS MI 48326
Frederic Lissalde officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Hau N Thai-tang director ONE AMERICAN ROAD, DEARBORN MI 48126
Sailaja Shankar director 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Felecia J. Pryor officer: EVP & CHRO 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Sara A. Greenstein director 600 GRANT STREET, PITTSBURGH PA 15219
Paul Arthur Farrell officer: VP & Chief Strategy Officer 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Volker Weng officer: Vice President 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Davide Girelli officer: Vice President 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326