BorgWarner Inc (BWA)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,729,000 | 24,766,000 | 21,544,000 | 18,850,000 | 15,825,000 | 16,484,000 | 16,848,000 | 16,082,000 | 15,805,000 | 15,319,000 | 14,706,000 | 14,749,000 | 14,878,000 | 15,140,000 | 14,258,000 | 11,904,000 | 10,171,000 | 8,803,000 | 8,757,000 | 9,881,000 |
| Property, plant and equipment | US$ in thousands | 3,555,000 | 3,814,000 | 3,736,000 | 3,766,000 | 3,758,000 | 3,569,000 | 4,482,000 | 4,463,000 | 3,416,000 | 4,006,000 | 4,151,000 | 4,337,000 | 4,384,000 | 4,398,000 | 4,535,000 | 4,449,000 | 4,579,000 | 2,824,000 | 2,781,000 | 2,839,000 |
| Fixed asset turnover | 7.24 | 6.49 | 5.77 | 5.01 | 4.21 | 4.62 | 3.76 | 3.60 | 4.63 | 3.82 | 3.54 | 3.40 | 3.39 | 3.44 | 3.14 | 2.68 | 2.22 | 3.12 | 3.15 | 3.48 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,729,000K ÷ $3,555,000K
= 7.24
BorgWarner Inc's fixed asset turnover has demonstrated a fluctuating trend over the periods provided. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
From March 31, 2020, to December 31, 2021, the fixed asset turnover ratio ranged between 2.22 and 3.44, indicating some variability in the efficiency of asset utilization but generally at a moderate level.
Starting from March 31, 2022, there was a notable improvement in the ratio, with values ranging from 3.40 to 7.24 by December 31, 2024. This upswing suggests that BorgWarner Inc has been able to generate more revenue per dollar of fixed assets invested, reflecting increased efficiency in asset utilization over these periods.
The consistent increase in the fixed asset turnover ratio from March 31, 2022, onwards highlights the company's ability to boost productivity and extract more value from its fixed assets, potentially indicating improved operational effectiveness and profitability. Monitoring this trend can provide insights into BorgWarner Inc's ongoing operational performance and efficiency in leveraging its fixed assets for revenue generation.
Peer comparison
Dec 31, 2024