BorgWarner Inc (BWA)
Payables 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 |
| Payables | US$ in thousands | — | 2,684,000 | 2,276,000 | — | 1,325,000 |
| Payables turnover | — | 4.73 | 5.26 | — | 6.09 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,630,000K ÷ $—K
= —
BorgWarner Inc's payables turnover ratio has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a certain period.
The declining trend from 2019 to 2021, with a decrease from 6.09 to 5.26 to 4.73, suggests that BorgWarner was taking longer to pay off its suppliers during these years. However, in 2023, there was a slight improvement with the ratio increasing to 4.57.
Overall, a payables turnover ratio above 1 indicates that BorgWarner is effectively managing its accounts payable by paying suppliers in a timely manner. A lower ratio may suggest that the company is taking longer to pay its vendors, which could impact supplier relationships and future credit terms.
It is important for BorgWarner to monitor and manage its payables turnover ratio effectively to maintain good relationships with suppliers, optimize cash flow, and ensure efficient working capital management.
Peer comparison
Dec 31, 2023