How do you interpret air management — asset impairment and loss on divestiture?

Lower values are preferred as high impairment charges indicate poor capital allocation or declining value of legacy product lines.

How does air management — asset impairment and loss on divestiture compare across companies?

Standard line item for companies in capital-intensive industries undergoing technological transition.

BorgWarner BWA Air Management — Asset impairment and loss on divestiture

Discontinued — last reported Q2 '20

Similar metrics at other companies

BWXTCommercial Operations — Losses (Gains) on Asset Disposals and Impairments, Net:

-$2.25K-100%

BWXTCommercial Operations — Gain (Loss) on Sale of Assets and Asset Impairment Charges

-$125K—

MLIOperating Segments — Asset Impairment Charges

$0—

TKRAerospace Overhaul — Asset Impairment Charges

$1.2M—

SWKOther Businesses — Impairment Of Long Lived Assets To Be Disposed Of

$5.55M—

MOG.BMilitary Aircraft — Goodwill, Written off Related to Sale of Business Unit

$1.74M—

Other financials

Income statement

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Revenue$3.5B+0.5%

Gross profit$677.0M+5.9%

Operating income$336.0M+41.8%

Net income$242.0M+54.1%

EPS (diluted)$1.16+61.1%

Balance sheet

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Cash & equivalents$2.3B+10.5%

Total debt$4.1B+2.1%

Total equity$5.5B-4.2%

Total assets$13.7B-1.3%

Cash flow

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Operating cash flow$152.0M+85.4%

CapEx$143.0M+20.2%

Free cash flow$9.0M+124%

Valuation

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Market cap$14.74B+77.6%

P/E18.9×-7.9×

P/S1×+0.4×

Profitability

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Gross margin18.9%0.0pp

Operating margin8.1%-0.1pp

Net margin6.3%+1.1pp

FCF margin8.5%+1.5pp

Returns & leverage

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Return on equity15%+3.5pp

Debt / equity0.7×0.0×

Current ratio2.1×+0.2×

Where this comes from

Reported directly by BorgWarner in its filing.

Tagged under the XBRL concept us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf.

The official record: BorgWarner’s 10-Q, filed August 5, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does air management — asset impairment and loss on divestiture mean?: The financial loss recognized from writing down the value of assets or selling parts of the business.
How do you interpret air management — asset impairment and loss on divestiture?: Lower values are preferred as high impairment charges indicate poor capital allocation or declining value of legacy product lines.
How does air management — asset impairment and loss on divestiture compare across companies?: Standard line item for companies in capital-intensive industries undergoing technological transition.