BorgWarner Inc (BWA)
Total asset 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 |
| Total assets | US$ in thousands | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 | 9,702,000 |
| Total asset turnover | 0.98 | 0.74 | 0.90 | 0.63 | 1.05 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,198,000K ÷ $14,453,000K
= 0.98
BorgWarner Inc's total asset turnover has shown a fluctuating trend over the past five years. The ratio increased from 0.63 in 2020 to 1.05 in 2019, indicating that the company generated more revenue from its total assets in 2019. However, in the following years, the total asset turnover ratio decreased to 0.90 in 2021, 0.93 in 2022, and further down to 0.98 in 2023.
Having total asset turnover ratios below 1 suggests that BorgWarner Inc is not generating as much revenue for each dollar invested in assets. This may indicate inefficiencies in asset utilization or declining sales relative to the assets held by the company. It is important for the company to assess its asset management strategies and operational efficiency to improve its total asset turnover ratio in order to maximize revenue generation from its assets.
Peer comparison
Dec 31, 2023