BorgWarner Inc (BWA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,438,000 | 11,630,000 | 12,700,000 | 11,983,000 | 8,255,000 |
| Inventory | US$ in thousands | 1,251,000 | 1,313,000 | 1,217,000 | 1,534,000 | 1,286,000 |
| Inventory turnover | 9.14 | 8.86 | 10.44 | 7.81 | 6.42 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,438,000K ÷ $1,251,000K
= 9.14
BorgWarner Inc's inventory turnover has shown a positive trend over the past five years. The ratio has increased steadily from 6.42 in December 2020 to 9.14 in December 2024. This indicates that the company has been able to sell and replace its inventory more efficiently over the years.
A higher inventory turnover ratio suggests that BorgWarner Inc is managing its inventory effectively by quickly converting it into sales. This may reflect well on the company's operational efficiency and working capital management.
However, the inventory turnover ratio does not provide a complete picture on its own and should be analyzed in conjunction with other financial metrics to get a comprehensive understanding of BorgWarner Inc's overall performance and efficiency in managing its inventory.
Peer comparison
Dec 31, 2024