Brunswick Corporation (BC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 149,300 | 420,400 | 677,000 | 593,300 | 372,700 |
| Total assets | US$ in thousands | 5,677,700 | 6,230,500 | 6,321,300 | 5,425,000 | 3,770,600 |
| ROA | 2.63% | 6.75% | 10.71% | 10.94% | 9.88% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $149,300K ÷ $5,677,700K
= 2.63%
Brunswick Corporation's return on assets (ROA) has shown mixed performance over the past five years.
In 2020, the company achieved an ROA of 9.88%, indicating that for every dollar of assets owned, Brunswick generated a profit of 9.88 cents. This figure improved slightly to 10.94% in 2021, demonstrating an increase in efficiency in utilizing its assets to generate earnings.
However, in 2022, although the ROA remained relatively high at 10.71%, there was a slight decrease from the previous year. The trend took a significant downturn in 2023, with the ROA dropping to 6.75%. This decline could indicate potential challenges in managing assets effectively to generate profits.
By 2024, the ROA plummeted to 2.63%, the lowest across the five years under review. This steep decline suggests a substantial decrease in Brunswick's ability to generate earnings relative to its asset base, raising concerns about the company's profitability and asset utilization efficiency.
Overall, the fluctuating trend in Brunswick Corporation's ROA highlights the importance of closely monitoring and evaluating the company's asset management strategies and profitability performance to ensure sustainable financial health and operational efficiency.
Peer comparison
Dec 31, 2024