BorgWarner Inc (BWA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,630,000 | 12,700,000 | 11,983,000 | 8,255,000 | 8,067,000 |
| Inventory | US$ in thousands | 1,313,000 | 1,217,000 | 1,534,000 | 1,286,000 | 807,000 |
| Inventory turnover | 8.86 | 10.44 | 7.81 | 6.42 | 10.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,630,000K ÷ $1,313,000K
= 8.86
BorgWarner Inc's inventory turnover has shown some fluctuations over the past five years, ranging from 6.42 in 2020 to 10.00 in 2019. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a period.
The increase in the inventory turnover ratio from 2020 to 2019 indicates that BorgWarner Inc improved its inventory management efficiency, selling and replacing its inventory more frequently in 2019. However, there was a slight dip in 2020 before an upward trend in 2021 and 2023.
The overall trend suggests that BorgWarner Inc has been relatively effective in managing its inventory turnover, maintaining ratios above 7.00 over the past five years. A higher inventory turnover ratio generally indicates better sales and inventory management practices, which can lead to lower carrying costs and potentially higher profitability.
Peer comparison
Dec 31, 2023