BorgWarner Inc (BWA)
Working capital 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 |
| Total current assets | US$ in thousands | 6,521,000 | 6,856,000 | 6,004,000 | 5,957,000 | 6,217,000 | 5,900,000 | 6,876,000 | 6,607,000 | 6,617,000 | 6,547,000 | 6,480,000 | 6,640,000 | 6,597,000 | 6,462,000 | 6,537,000 | 6,582,000 | 6,167,000 | 5,165,000 | 4,641,000 | 3,741,000 |
| Total current liabilities | US$ in thousands | 3,646,000 | 3,718,000 | 3,712,000 | 3,869,000 | 3,767,000 | 3,573,000 | 4,235,000 | 4,148,000 | 4,236,000 | 3,816,000 | 3,651,000 | 3,859,000 | 3,798,000 | 3,637,000 | 3,862,000 | 3,921,000 | 3,810,000 | 2,199,000 | 1,970,000 | 2,124,000 |
| Working capital turnover | 8.95 | 7.89 | 9.40 | 9.03 | 6.46 | 7.08 | 6.38 | 6.54 | 6.64 | 5.61 | 5.20 | 5.30 | 5.32 | 5.36 | 5.33 | 4.47 | 4.32 | 2.97 | 3.28 | 6.11 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $25,729,000K ÷ ($6,521,000K – $3,646,000K)
= 8.95
The working capital turnover ratio for BorgWarner Inc has shown fluctuations over the past few years, indicating changes in how efficiently the company is utilizing its working capital to generate sales.
From March 2020 to September 2020, the working capital turnover decreased significantly from 6.11 to 2.97, suggesting a potential decrease in operational efficiency during this period. However, from December 2020 onward, the ratio started to improve, reaching a peak of 9.40 by June 2024.
Overall, the trend indicates that BorgWarner Inc has been able to effectively manage its working capital in recent years, as evidenced by the increasing trend in the working capital turnover ratio. This implies that the company is efficiently using its current assets and liabilities to support its sales activities and generate revenue.
It is important for the company to maintain this upward trend in the working capital turnover ratio to ensure continued operational efficiency and financial stability.
Peer comparison
Dec 31, 2024