BorgWarner Inc (BWA)

Days of inventory on hand (DOH)

		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
Inventory turnover		10.86	9.60	10.05	10.58	11.14	11.40	8.30	8.23	11.92	8.22	7.93	7.93	8.65	8.61	8.48	8.35	7.32	9.29	8.74	9.27
DOH	days	33.60	38.03	36.30	34.50	32.76	32.01	43.98	44.36	30.62	44.38	46.02	46.04	42.18	42.39	43.04	43.70	49.84	39.28	41.78	39.37

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.86
= 33.60

Days of Inventory on Hand (DOH) is an important metric that measures the average number of days a company holds inventory before selling it. For BorgWarner Inc, we observed fluctuations in its DOH over the analyzed periods.

From March 31, 2020, to December 31, 2022, BorgWarner Inc experienced varying levels of DOH ranging from a low of 30.62 days to a high of 49.84 days. The significant increase to 49.84 days at the end of 2020 may indicate potential issues such as excess inventory or slowing sales, which could tie up working capital. However, the subsequent decrease in DOH to 30.62 days by the end of 2022 suggests an improvement in inventory management efficiency.

The DOH then showed some fluctuations in the following periods but generally remained within a narrower range. For the most recent data available, BorgWarner Inc had a DOH of 33.60 days as of December 31, 2024. This indicates a relatively stable inventory management approach compared to previous years.

Overall, BorgWarner Inc's DOH trend reveals the company's efforts to optimize inventory levels and enhance operational effectiveness. It is important for investors and stakeholders to closely monitor these metrics to assess the company's ability to effectively manage its inventory and respond to changing market conditions.