BorgWarner Inc (BWA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 9.05 | 7.70 | 6.93 | 5.73 | 5.09 | 4.92 | 4.37 | 4.51 | 6.40 | 4.56 | 4.69 | 4.66 | 5.13 | 5.24 | 4.65 | 3.78 | 3.48 | 4.45 | 5.70 | 5.70 |
| Payables turnover | — | — | — | — | — | — | — | — | 5.40 | — | — | — | 5.83 | — | — | — | — | — | — | — |
| Working capital turnover | 8.95 | 7.89 | 9.40 | 9.03 | 6.46 | 7.08 | 6.38 | 6.54 | 6.64 | 5.61 | 5.20 | 5.30 | 5.32 | 5.36 | 5.33 | 4.47 | 4.32 | 2.97 | 3.28 | 6.11 |
Based on the provided data, we can analyze the activity ratios of BorgWarner Inc over a span of several reporting periods.
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently BorgWarner manages its inventory. The trend shows some fluctuations, with the ratio fluctuating between 7.32 and 11.92.
- Generally, a higher turnover ratio indicates efficient inventory management. BorgWarner's inventory turnover has shown fluctuations but has generally been within a reasonable range.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently BorgWarner collects its receivables. The trend indicates a mix of fluctuations and improvements, with the ratio ranging from 3.48 to 9.05.
- An increasing receivables turnover ratio can suggest an improvement in the collection process. BorgWarner's ratio has shown some variability but has generally trended upwards over time.
3. Payables Turnover:
- The payables turnover ratio indicates how quickly BorgWarner pays its suppliers. The data shows that this ratio was not provided for most of the periods, except for December 31, 2021, and December 31, 2022, where the turnover ratios were 5.83 and 5.40, respectively.
- A higher payables turnover ratio may suggest that BorgWarner is managing its payables efficiently by paying suppliers promptly.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently BorgWarner utilizes its working capital to generate sales. The ratio has ranged from 2.97 to 9.40, indicating some variability in working capital efficiency.
- A higher turnover ratio indicates better utilization of working capital. BorgWarner's working capital turnover has shown improvements over the periods analyzed, suggesting enhanced efficiency in utilizing working capital.
In conclusion, BorgWarner Inc's activity ratios show variability and mixed trends over the reporting periods. The company demonstrates some efficiency in managing inventory, collecting receivables, and utilizing working capital. However, it is essential for BorgWarner to consistently monitor and improve these ratios to optimize its operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.60 | 38.03 | 36.30 | 34.50 | 32.76 | 32.01 | 43.98 | 44.36 | 30.62 | 44.38 | 46.02 | 46.04 | 42.18 | 42.39 | 43.04 | 43.70 | 49.84 | 39.28 | 41.78 | 39.37 |
| Days of sales outstanding (DSO) | days | 40.33 | 47.38 | 52.71 | 63.69 | 71.71 | 74.20 | 83.54 | 80.93 | 57.07 | 80.13 | 77.79 | 78.35 | 71.10 | 69.67 | 78.41 | 96.68 | 104.75 | 81.97 | 63.98 | 64.09 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | 67.54 | — | — | — | 62.58 | — | — | — | — | — | — | — |
Based on the provided data for BorgWarner Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The average DOH for BorgWarner Inc over the period was approximately 40 days. The company's inventory turnover improved slightly in the most recent period, with DOH decreasing to around 34 days by the end of December 2024. This indicates that BorgWarner has been managing its inventory more efficiently.
2. Days of Sales Outstanding (DSO):
- The DSO metric ranged from around 50 to 100 days during the period. BorgWarner Inc experienced fluctuations in its DSO, but it decreased significantly to about 40 days by the end of December 2024. This signifies that the company has been collecting its receivables more quickly.
3. Number of Days of Payables:
- The data provided does not specify the number of days of payables for the earlier periods. However, starting from December 2021, the number of days of payables increased to around 60 days by the end of December 2024. This indicates that BorgWarner Inc takes longer to pay its suppliers, which may be a strategic move to manage cash flow.
Overall, analyzing these activity ratios reveals that BorgWarner Inc has improved its inventory management and collection of receivables, while also extending its payment terms with suppliers over the analyzed period.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.24 | 6.49 | 5.77 | 5.01 | 4.21 | 4.62 | 3.76 | 3.60 | 4.63 | 3.82 | 3.54 | 3.40 | 3.39 | 3.44 | 3.14 | 2.68 | 2.22 | 3.12 | 3.15 | 3.48 |
| Total asset turnover | 1.84 | 1.64 | 1.53 | 1.33 | 1.09 | 1.17 | 0.97 | 0.94 | 0.93 | 0.95 | 0.91 | 0.88 | 0.90 | 0.92 | 0.85 | 0.75 | 0.63 | 0.81 | 0.85 | 1.04 |
BorgWarner Inc's fixed asset turnover ratio has shown a generally increasing trend over the years, indicating that the company has been more efficient in generating sales from its fixed assets. The ratio increased from 3.48 in March 2020 to 7.24 in December 2024. This suggests that BorgWarner has been able to utilize its fixed assets more effectively to generate revenue over time.
On the other hand, the total asset turnover ratio has fluctuated but generally shown an increasing trend. The ratio started at 1.04 in March 2020, dropped to 0.63 by December 2020, and then gradually increased to 1.84 by December 2024. This indicates that BorgWarner has been able to generate more sales from its total assets as time has progressed.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that BorgWarner has been able to improve its efficiency in utilizing both fixed and total assets to generate revenue over the years. This may suggest effective asset management and operational efficiency within the company.