BorgWarner Inc (BWA)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,729,000 | 24,766,000 | 21,544,000 | 18,850,000 | 15,825,000 | 16,484,000 | 16,848,000 | 16,082,000 | 15,805,000 | 15,319,000 | 14,706,000 | 14,749,000 | 14,878,000 | 15,140,000 | 14,258,000 | 11,904,000 | 10,171,000 | 8,803,000 | 8,757,000 | 9,881,000 |
| Receivables | US$ in thousands | 2,843,000 | 3,215,000 | 3,111,000 | 3,289,000 | 3,109,000 | 3,351,000 | 3,856,000 | 3,566,000 | 2,471,000 | 3,363,000 | 3,134,000 | 3,166,000 | 2,898,000 | 2,890,000 | 3,063,000 | 3,153,000 | 2,919,000 | 1,977,000 | 1,535,000 | 1,735,000 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,729,000K ÷ $2,843,000K
= 9.05
The receivables turnover ratio measures how effectively BorgWarner Inc is managing its accounts receivable by assessing how many times the company collects its average accounts receivable balance during a period. Higher values indicate a more efficient collection process.
Based on the provided data, BorgWarner Inc's receivables turnover ratio has fluctuated over the periods under review. The ratio was relatively stable around 4-5 times from March 2020 to March 2022. However, there was a significant increase in the ratio in the latter part of 2022 and throughout 2023, reaching a peak of 9.05 times by December 2024.
The increasing trend in the receivables turnover ratio indicates that BorgWarner Inc has been improving its ability to collect outstanding receivables more quickly. A higher turnover ratio suggests that the company is managing its credit policies efficiently and is collecting payments from customers in a timely manner. This improvement could also signify a strong customer base, effective credit management practices, or potential changes in the company's sales strategy.
Overall, the upward trajectory of BorgWarner Inc's receivables turnover ratio reflects positively on the company's financial management and indicates improved efficiency in handling its accounts receivable over the analyzed periods.
Peer comparison
Dec 31, 2024