Business

BorgWarner Inc. and Consolidated Subsidiaries (the “Company”) is a leading global supplier of highly engineered automotive systems and components primarily for powertrain applications. Our products help improve vehicle performance, fuel efficiency, stability and air quality. These products are manufactured and sold worldwide, primarily to original equipment manufacturers (“OEMs”) of light vehicles (passenger cars, sport-utility vehicles ("SUVs"), vans and light trucks). The Company's products are also sold to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications). We also manufacture and sell our products to certain Tier One vehicle systems suppliers and into the aftermarket for light, commercial and off-highway vehicles. The Company operates manufacturing facilities serving customers in the Americas, Europe and Asia and is an original equipment supplier to every major automotive OEM in the world. The Company's products fall into two reporting segments: Engine and Drivetrain.(from 10-K)

1. What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years? 

Summary of Consolidated Income Statement of BorgWarner Inc.

$ million | 2014 | 2013 | 2012 |

Revenue | 8,305 | 7,437 | 7,183 |

Gross Profit | 1,756 | 1,558 | 1,467 |

S, G & A Expense | 793 | 702 | 714 |

Operating Income | 964 | 855 | 753 |

Net Income | 656 | 624 | 501 |

Based on the summary of Borgwarner Inc. Consolidated Income statement for three years

Revenue Growth | 10% | 3% | |

Gross Profit/Revenue | 21% | 21% | 20% |

S,G& A Expense/Revenue | 10% | 9% | 10% |

1. Revenue: Should be growing over time: It went above from (3% to 10%).

2. Gross Profit: Should be a stable % of Sales Revenue. Consistent 20%-21% each of last 3 years.

3. SG & A Expenses: Should...