BorgWarner Inc (BWA)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 10,168,000 | 10,183,000 | 10,169,000 | 10,312,000 |
| Total current assets | US$ in thousands | 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 | 3,836,000 | 3,987,000 | 3,849,000 | 3,719,000 |
| Total current liabilities | US$ in thousands | 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 | 2,329,000 | 2,525,000 | 2,313,000 | 2,299,000 |
| Working capital turnover | 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 | 6.75 | 6.97 | 6.62 | 7.26 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,825,000K ÷ ($6,217,000K – $3,767,000K)
= 6.46
BorgWarner Inc's working capital turnover has fluctuated over the recent quarters but has generally been at a healthy level. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
In Q3 2023, the working capital turnover was at its highest at 7.06, indicating that BorgWarner Inc was able to generate $7.06 of revenue for every dollar of working capital invested during that quarter. This suggests that the company efficiently managed its working capital to support its sales activities.
While there was a slight decrease in Q4 2023 to 5.80, the ratio remained relatively high compared to previous quarters. This indicates that BorgWarner Inc continued to effectively utilize its working capital to generate revenue.
Overall, the trend in the working capital turnover ratios for BorgWarner Inc reflects a strong performance in managing working capital efficiently to support its business operations and drive sales growth.
Peer comparison
Dec 31, 2023