BorgWarner Inc (BWA)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 10,168,000 | 10,183,000 | 10,169,000 | 10,312,000 |
| Property, plant and equipment | US$ in thousands | 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 | 2,925,000 | 2,812,000 | 2,891,000 | 2,895,000 |
| Fixed asset turnover | 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 | 3.48 | 3.62 | 3.52 | 3.56 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,825,000K ÷ $3,758,000K
= 4.21
BorgWarner Inc's fixed asset turnover ratio has been fluctuating over the past eight quarters, with values ranging from 3.39 to 4.60. The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets.
In the most recent quarter, Q4 2023, the fixed asset turnover was 3.75, indicating that the company generated $3.75 in revenue for every $1 invested in fixed assets. This was a slight decrease from the previous quarter's value of 4.60.
The trend over the eight quarters shows some variability, with the ratio reaching its peak in Q3 2023 at 4.60 and its lowest point in Q2 2022 at 3.39. Overall, the company has maintained a relatively healthy level of fixed asset turnover, indicating efficient utilization of fixed assets to generate revenue.
It is important for BorgWarner Inc to monitor its fixed asset turnover ratio regularly to ensure optimal asset utilization and efficiency in its operations. Any significant fluctuations in this ratio may warrant further investigation into the company's asset management practices.
Peer comparison
Dec 31, 2023