BorgWarner Inc (BWA)
Working capital 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 |
| Total current assets | US$ in thousands | 6,521,000 | 6,217,000 | 6,617,000 | 6,597,000 | 6,167,000 |
| Total current liabilities | US$ in thousands | 3,646,000 | 3,767,000 | 4,236,000 | 3,798,000 | 3,810,000 |
| Working capital turnover | 4.90 | 5.80 | 5.31 | 5.30 | 4.31 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,086,000K ÷ ($6,521,000K – $3,646,000K)
= 4.90
BorgWarner Inc's working capital turnover has shown a positive trend over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In December 2020, the working capital turnover ratio was 4.31, indicating that for every dollar of working capital, BorgWarner generated $4.31 in sales revenue. This ratio increased steadily in the following years, reaching 5.30 in December 2021, 5.31 in December 2022, and further improving to 5.80 in December 2023.
However, in December 2024, there was a slight decline in the working capital turnover ratio to 4.90. Despite this dip, the ratio is still relatively high, suggesting that BorgWarner continues to effectively manage its working capital to support its sales activities.
Overall, the increasing trend in BorgWarner's working capital turnover ratio indicates that the company has been able to improve its operational efficiency and generate more sales revenue relative to its working capital investment over the past five years. This trend reflects positively on BorgWarner's management of its working capital resources and its ability to generate revenue efficiently.
Peer comparison
Dec 31, 2024