BorgWarner Inc (BWA)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,590,000 | 13,109,000 | 13,292,000 | 14,101,000 | 14,629,000 | 15,141,000 | 15,438,000 | 14,811,000 | 14,505,000 | 13,636,000 | 13,110,000 | 13,034,000 | 13,275,000 | 14,198,000 | 13,288,000 | 11,367,000 | 9,417,000 | 7,574,000 | 7,303,000 | 7,852,000 |
| Inventory | US$ in thousands | 1,251,000 | 1,366,000 | 1,322,000 | 1,333,000 | 1,313,000 | 1,328,000 | 1,860,000 | 1,800,000 | 1,217,000 | 1,658,000 | 1,653,000 | 1,644,000 | 1,534,000 | 1,649,000 | 1,567,000 | 1,361,000 | 1,286,000 | 815,000 | 836,000 | 847,000 |
| Inventory turnover | 10.86 | 9.60 | 10.05 | 10.58 | 11.14 | 11.40 | 8.30 | 8.23 | 11.92 | 8.22 | 7.93 | 7.93 | 8.65 | 8.61 | 8.48 | 8.35 | 7.32 | 9.29 | 8.74 | 9.27 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,590,000K ÷ $1,251,000K
= 10.86
Based on the data provided, BorgWarner Inc's inventory turnover ratio has varied over the years. The inventory turnover ratio measures how efficiently a company is managing its inventory by showing the number of times the inventory is sold and replaced within a specific period.
BorgWarner's inventory turnover ratio ranged from 7.32 to 11.92 between December 31, 2020, and December 31, 2024. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently, while a lower ratio may suggest overstocking or slow-moving inventory.
The average inventory turnover ratio for BorgWarner Inc over this period is approximately 9.36. This indicates that, on average, BorgWarner sells and replaces its inventory around 9.36 times a year.
It is important to note that changes in the inventory turnover ratio can be influenced by various factors such as seasonal demand, production efficiencies, sales strategies, and supply chain management. Therefore, monitoring BorgWarner's inventory turnover ratio over time can provide insights into the company's inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024