BorgWarner Inc (BWA)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,086,000 | 14,198,000 | 12,635,000 | 14,838,000 | 10,165,000 |
| Receivables | US$ in thousands | 2,843,000 | 3,109,000 | 2,471,000 | 2,898,000 | 2,919,000 |
| Receivables turnover | 4.95 | 4.57 | 5.11 | 5.12 | 3.48 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,086,000K ÷ $2,843,000K
= 4.95
To analyze BorgWarner Inc's receivables turnover over the past five years, we observe an increasing trend from 3.48 in December 2020 to 5.12 in December 2021, followed by a slight decline to 5.11 in December 2022. Subsequently, the ratio decreased further to 4.57 in December 2023, before rising to 4.95 in December 2024.
The receivables turnover ratio indicates how effectively the company is collecting payments from its customers. A higher turnover ratio suggests that BorgWarner Inc is collecting its accounts receivable more efficiently. The company's performance in managing its receivables improved significantly from 2020 to 2021, but then saw some fluctuations in the following years.
Overall, BorgWarner Inc maintained a fairly healthy receivables turnover ratio over the period under review, although some fluctuations were evident. It is advisable for the company to continue monitoring and managing its receivables effectively to ensure steady cash flows and overall financial health.
Peer comparison
Dec 31, 2024