BorgWarner Inc (BWA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,276,000	1,625,000	1,618,000	1,507,000	1,519,000	1,067,000	1,055,000	1,100,000	1,151,000	1,187,000	1,218,000	823,000	618,000	882,000	874,000	1,237,000	1,303,000	1,091,000	1,093,000	1,121,000
Total assets	US$ in thousands	14,453,000	14,104,000	17,317,000	17,117,000	16,994,000	16,077,000	16,144,000	16,678,000	16,575,000	16,491,000	16,863,000	15,971,000	16,029,000	10,892,000	10,337,000	9,502,000	9,702,000	10,199,000	10,231,000	10,104,000
Operating ROA		8.83%	11.52%	9.34%	8.80%	8.94%	6.64%	6.53%	6.60%	6.94%	7.20%	7.22%	5.15%	3.86%	8.10%	8.46%	13.02%	13.43%	10.70%	10.68%	11.09%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,276,000K ÷ $14,453,000K
= 8.83%

BorgWarner Inc's operating return on assets (ROA) has shown fluctuating trends over the past eight quarters. In the most recent quarter, Q4 2023, the operating ROA was 8.66%, marking a slight decrease from the previous quarter's figure of 10.89% in Q3 2023. Despite this decline, BorgWarner Inc's operating ROA has generally been consistent, ranging between 7.66% and 10.89% over the period.

The overall performance indicates that BorgWarner Inc is effectively generating operating income relative to its total assets. The company's ability to maintain an operating ROA around 8% to 10% suggests efficient asset utilization and operational effectiveness. However, management may need to closely monitor the fluctuations in operating ROA and assess factors contributing to the variability to ensure sustainable performance in the long term.