BorgWarner (BSP:B1WA34) ROCE % : 11.23% (As of Dec. 2023)

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What is BorgWarner ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. BorgWarner's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.23%.

BorgWarner ROCE % Historical Data

The historical data trend for BorgWarner's ROCE % 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.

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BorgWarner ROCE % Chart

BorgWarner Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.02

11.46

4.96

7.42

8.74

BorgWarner Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															7.80	10.44	10.34	10.91	11.23

BorgWarner ROCE % Calculation

BorgWarner's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	5213.387	/	( ( (89140.328 - 22219.514)	+	(70816.809 - 18457.547) )	/ 2 )
	=	5213.387	/	( (66920.814	+	52359.262)	/ 2 )
	=	5213.387	/	59640.038
	=	8.74 %

BorgWarner's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	5860.16	/	( ( (69655.425 - 17645.975)	+	(70816.809 - 18457.547) )	/ 2 )
	=	5860.16	/	( ( 52009.45	+	52359.262 )	/ 2 )
	=	5860.16	/	52184.356
	=	11.23 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

BorgWarner (BSP:B1WA34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

BorgWarner ROCE % Related Terms

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BorgWarner (BSP:B1WA34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » BorgWarner Inc (BSP:B1WA34) » Definitions » ROCE %

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BWA:USA BGW:Germany

Address

3850 Hamlin Road, Auburn Hills, MI, USA, 48326

Website

https://www.borgwarner.com

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.

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