Brunswick Corporation (BC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 311,600 | 734,900 | 947,800 | 812,900 | 539,300 |
| Total assets | US$ in thousands | 5,677,700 | 6,230,500 | 6,321,300 | 5,425,000 | 3,770,600 |
| Operating ROA | 5.49% | 11.80% | 14.99% | 14.98% | 14.30% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $311,600K ÷ $5,677,700K
= 5.49%
Based on the data provided, Brunswick Corporation's operating return on assets (operating ROA) has shown a fluctuating trend over the five-year period from 2020 to 2024.
In December 2020, the operating ROA stood at 14.30%, indicating that for every dollar of assets employed in operations, the company generated a return of 14.30 cents.
The operating ROA showed a slight improvement in 2021, reaching 14.98%, and continued to increase marginally in 2022 to 14.99%. This suggests that the company was effectively utilizing its assets to generate operating income during these years.
However, there was a notable decline in operating ROA in 2023, dropping to 11.80%. This could indicate potential challenges in asset management or operational efficiency during that year.
The most significant decrease was observed in 2024, where the operating ROA fell sharply to 5.49%. This substantial decline may raise concerns about the company's ability to generate operating income relative to the assets employed.
Overall, Brunswick Corporation should carefully analyze the factors contributing to these fluctuations in operating ROA to identify areas for improvement in asset utilization and operational performance for sustainable financial success.
Peer comparison
Dec 31, 2024