BorgWarner Inc (BWA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 546,000 | 1,143,000 | 1,145,000 | 1,181,000 | 1,160,000 | 1,509,000 | 1,502,000 | 1,441,000 | 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 |
| Total assets | US$ in thousands | 13,993,000 | 15,137,000 | 14,108,000 | 14,122,000 | 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 |
| Operating ROA | 3.90% | 7.55% | 8.12% | 8.36% | 8.03% | 10.70% | 8.67% | 8.42% | 8.94% | 6.64% | 6.53% | 6.60% | 6.94% | 7.20% | 7.22% | 5.15% | 3.86% | 8.10% | 8.46% | 13.02% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $546,000K ÷ $13,993,000K
= 3.90%
The operating Return on Assets (ROA) of BorgWarner Inc has shown fluctuations over the analyzed period. As of December 31, 2020, the operating ROA stood at 3.86%, indicating that the company generated 3.86 cents of operating income for every dollar of assets employed. Subsequently, there was a gradual increase in the operating ROA, reaching its peak at 10.70% on September 30, 2023, reflecting a more efficient utilization of assets to generate operating income.
However, the operating ROA experienced a decline in the following periods, dropping to 3.90% by December 31, 2024. This downward trend might suggest a decrease in the company's ability to generate operating income relative to its asset base. It is important for stakeholders to monitor BorgWarner Inc's operating ROA to assess the company's operational efficiency and profitability in utilizing its assets to generate earnings.
Peer comparison
Dec 31, 2024