BorgWarner Inc (BWA)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 625,000 | 944,000 | 537,000 | 500,000 | 746,000 |
| Total assets | US$ in thousands | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 | 9,702,000 |
| ROA | 4.32% | 5.55% | 3.24% | 3.12% | 7.69% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $625,000K ÷ $14,453,000K
= 4.32%
BorgWarner Inc's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA decreased to 4.32% from 5.55% in 2022. This decline suggests a decrease in the company's ability to generate profits from its assets compared to the previous year.
Comparing the ROA to 2021, where it was 3.24%, the 2023 ROA indicates an improvement. However, it is lower than the ROA of 3.12% recorded in 2020. Notably, the company achieved a significant ROA of 7.69% in 2019, indicating a strong performance in leveraging its assets to generate profits that year.
Overall, while BorgWarner Inc's ROA has shown variations, it is essential for the company to analyze the factors contributing to these changes to enhance its efficiency in utilizing assets to generate returns in the future.
Peer comparison
Dec 31, 2023