BorgWarner Inc (BWA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,086,000 | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 |
| Property, plant and equipment | US$ in thousands | 3,555,000 | 3,758,000 | 3,416,000 | 4,384,000 | 4,579,000 |
| Fixed asset turnover | 3.96 | 3.78 | 3.70 | 3.38 | 2.22 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,086,000K ÷ $3,555,000K
= 3.96
The fixed asset turnover of BorgWarner Inc has exhibited a positive trend over the past five years. It increased from 2.22 in December 31, 2020, to 3.38 in December 31, 2021, showing an improvement in the company's efficiency in generating revenue from its fixed assets. This trend continued with the ratio further rising to 3.70 in December 31, 2022, 3.78 in December 31, 2023, and finally reaching 3.96 in December 31, 2024.
Overall, the increasing trend in fixed asset turnover indicates that BorgWarner Inc has been utilizing its fixed assets more efficiently to generate sales revenue. This could be a positive sign of effective asset management and operational performance, which may lead to enhanced profitability and financial strength for the company.
Peer comparison
Dec 31, 2024