BorgWarner Inc (BWA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 | 10,168,000 |
| Receivables | US$ in thousands | 3,109,000 | 2,471,000 | 2,898,000 | 2,919,000 | 1,921,000 |
| Receivables turnover | 4.57 | 5.11 | 5.12 | 3.48 | 5.29 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,198,000K ÷ $3,109,000K
= 4.57
The analysis of BorgWarner Inc's receivables turnover indicates a fluctuating trend over the past five years, ranging from 3.48 to 5.29 times. A higher receivables turnover ratio is generally indicative of more efficient collections and faster conversion of receivables into cash. In this case, BorgWarner's receivables turnover ratio was highest in 2021 at 5.12 times, suggesting efficient management of accounts receivable during that year.
However, the ratio declined in 2020 to 3.48 times, indicating a possible slowdown in collections or an increase in outstanding receivables. The subsequent increase to 4.76 times in 2022 and then a slight decrease to 4.57 times in 2023 may imply improvements in the efficiency of receivables management in those years.
Overall, BorgWarner's receivables turnover ratio has shown variability, and further analysis of the company's collection practices and credit policies may be necessary to fully understand the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023