BorgWarner Inc (BWA)
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 | 546,000 | 1,160,000 | 1,009,000 | 1,151,000 | 618,000 |
| Total assets | US$ in thousands | 13,993,000 | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 |
| Operating ROA | 3.90% | 8.03% | 5.94% | 6.94% | 3.86% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $546,000K ÷ $13,993,000K
= 3.90%
The operating return on assets (ROA) for BorgWarner Inc has shown fluctuations over the years. In 2020, the operating ROA was 3.86%, indicating that the company generated 3.86 cents of operating income for every dollar of assets. Subsequently, there was a notable increase to 6.94% in 2021, reflecting improved operational efficiency and profitability. However, the operating ROA decreased slightly to 5.94% in 2022 before rebounding to 8.03% in 2023, showcasing strong asset utilization and management.
Despite the positive trend in 2023, there was a decline in the operating ROA to 3.90% in 2024, suggesting a potential drop in operating income generated relative to the assets employed. Overall, BorgWarner Inc's operating ROA has exhibited variability, highlighting the necessity of closely monitoring operational performance and asset utilization to sustain and enhance profitability over time.
Peer comparison
Dec 31, 2024