BorgWarner Inc (BWA)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 8,067,000 | 8,083,000 | 8,078,000 | 8,154,000 |
| Payables | US$ in thousands | — | — | — | — | 2,684,000 | — | — | — | 2,276,000 | — | — | — | — | — | — | — | 1,325,000 | — | — | — |
| Payables turnover | — | — | — | — | 5.40 | — | — | — | 5.83 | — | — | — | — | — | — | — | 6.09 | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,629,000K ÷ $—K
= —
To analyze BorgWarner Inc's payables turnover, we look at the trend over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its trade payables by measuring the number of times the company pays off its average accounts payable balance in a given period.
In the provided data, we observe fluctuations in the payables turnover ratio quarter by quarter. The ratio ranges from a low of 4.57 in Q4 2023 to a high of 5.56 in Q3 2023, with the highest efficiency in paying its trade payables in that quarter. Overall, the payables turnover ratio for BorgWarner Inc has been relatively stable within the range of 4.57 to 5.56 over the past eight quarters.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which could indicate strong liquidity and efficient cash management. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers.
It is important to compare BorgWarner Inc's payables turnover ratio with industry benchmarks or competitors to gain a better understanding of how efficiently the company is managing its payables. Additionally, further analysis of the company's payment terms, cash flow position, and industry dynamics would provide deeper insights into the implications of the payables turnover ratio on BorgWarner Inc's financial performance and management of supplier relationships.
Peer comparison
Dec 31, 2023