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BorgWarner (LTS:0HOU) Return-on-Tangible-Equity : 49.16% (As of Jun. 2024)


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What is BorgWarner Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. BorgWarner's annualized net income for the quarter that ended in Jun. 2024 was $1,212 Mil. BorgWarner's average shareholder tangible equity for the quarter that ended in Jun. 2024 was $2,466 Mil. Therefore, BorgWarner's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was 49.16%.

The historical rank and industry rank for BorgWarner's Return-on-Tangible-Equity or its related term are showing as below:

LTS:0HOU' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.35   Med: 31.65   Max: 56.83
Current: 28.29

During the past 13 years, BorgWarner's highest Return-on-Tangible-Equity was 56.83%. The lowest was 19.35%. And the median was 31.65%.

LTS:0HOU's Return-on-Tangible-Equity is ranked better than
88.54% of 1256 companies
in the Vehicles & Parts industry
Industry Median: 8.61 vs LTS:0HOU: 28.29

BorgWarner Return-on-Tangible-Equity Historical Data

The historical data trend for BorgWarner's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

BorgWarner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.94 19.35 20.33 30.43 21.27

BorgWarner Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 26.61 7.38 27.22 36.02 49.16

Competitive Comparison of BorgWarner's Return-on-Tangible-Equity

For the Auto Parts subindustry, BorgWarner's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where BorgWarner's Return-on-Tangible-Equity falls into.



BorgWarner Return-on-Tangible-Equity Calculation

BorgWarner's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=625/( (3627+2251 )/ 2 )
=625/2939
=21.27 %

BorgWarner's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=1212/( (2324+2607)/ 2 )
=1212/2465.5
=49.16 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


BorgWarner  (LTS:0HOU) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


BorgWarner Return-on-Tangible-Equity Related Terms

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


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 14% and 11% of 2023 revenue, respectively. Geographically, Europe accounted for 36% of 2023 revenue, while Asia and North America were 34% and 29% apiece.

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