BorgWarner Inc (BWA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,160,000 | 1,009,000 | 1,151,000 | 618,000 | 1,303,000 |
| Total assets | US$ in thousands | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 | 9,702,000 |
| Operating ROA | 8.03% | 5.94% | 6.94% | 3.86% | 13.43% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,160,000K ÷ $14,453,000K
= 8.03%
BorgWarner Inc's operating return on assets (operating ROA) has exhibited some fluctuations over the past five years, ranging from a high of 12.66% in 2019 to a low of 5.98% in 2020. In 2023, the operating ROA slightly decreased to 8.66% compared to 8.77% in 2022.
The operating ROA of BorgWarner Inc indicates how efficiently the company is generating profits from its operating assets. A higher operating ROA suggests that the company is utilizing its assets effectively to generate operating income. However, the fluctuation in the operating ROA over the years could indicate variability in the company's profitability or changes in its operational efficiency.
Overall, while BorgWarner Inc's operating ROA has shown fluctuations, it remains relatively stable at above-average levels, indicating that the company is generally efficient in generating operating income relative to its asset base. Monitoring trends in the operating ROA can provide insights into the company's operational performance and efficiency in utilizing its assets.
Peer comparison
Dec 31, 2023