BorgWarner Inc (BWA)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 338,000 | 625,000 | 944,000 | 537,000 | 500,000 |
| Total assets | US$ in thousands | 13,993,000 | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 |
| ROA | 2.42% | 4.32% | 5.55% | 3.24% | 3.12% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $338,000K ÷ $13,993,000K
= 2.42%
BorgWarner Inc's return on assets (ROA) has exhibited fluctuating trends over the past five years. In 2020, the company's ROA stood at 3.12%, showing a slight increase to 3.24% in 2021. The ROA notably improved in 2022, reaching 5.55%, indicating a strong performance in utilizing its assets to generate profits. However, there was a decrease in ROA in 2023 to 4.32%, followed by a more significant decline to 2.42% in 2024.
The rise in ROA in 2022 suggests that BorgWarner Inc effectively generated higher profits relative to its assets during that period. However, the subsequent declines in 2023 and 2024 may indicate challenges in maintaining or improving asset efficiency or profitability. Further analysis of the company's financial and operational performance is warranted to understand the factors driving these fluctuations in ROA.
Peer comparison
Dec 31, 2024