BorgWarner Inc (BWA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 | 10,168,000 |
| Property, plant and equipment | US$ in thousands | 3,758,000 | 3,416,000 | 4,384,000 | 4,579,000 | 2,925,000 |
| Fixed asset turnover | 3.78 | 3.70 | 3.38 | 2.22 | 3.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,198,000K ÷ $3,758,000K
= 3.78
The fixed asset turnover ratio for BorgWarner Inc has shown a positive trend over the past five years. The ratio increased from 3.48 in 2019 to 3.75 in 2023, indicating that the company generated $3.75 in revenue for every dollar invested in fixed assets in 2023. This improvement suggests that BorgWarner has become more efficient in utilizing its fixed assets to generate sales.
The significant increase in fixed asset turnover from 2020 to 2021, followed by a steady growth in the subsequent years, indicates that BorgWarner has been able to squeeze more revenue out of its fixed asset base. This could be a result of better asset management, operational efficiency, or strategic investments in productive assets.
Overall, the increasing trend in fixed asset turnover reflects positively on BorgWarner's ability to optimize its fixed asset utilization and generate revenue efficiently. This trend is a good indicator of the company's operational effectiveness and financial performance in recent years.
Peer comparison
Dec 31, 2023