BorgWarner Inc (BWA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,534,000 | 949,000 | 848,000 | 950,000 | 1,333,000 | 1,241,000 | 1,390,000 | 1,501,000 | 1,841,000 | 1,507,000 | 1,553,000 | 1,755,000 | 1,650,000 | 2,121,000 | 2,003,000 | 901,000 | 832,000 | 916,000 | 710,000 | 494,000 |
| Short-term investments | US$ in thousands | 56,000 | — | — | — | 87,000 | — | — | — | — | 513,000 | 546,000 | 557,000 | 820,000 | 305,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.42 | 0.27 | 0.20 | 0.23 | 0.34 | 0.33 | 0.38 | 0.39 | 0.48 | 0.56 | 0.54 | 0.59 | 0.65 | 1.10 | 1.02 | 0.42 | 0.36 | 0.36 | 0.31 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,534,000K
+ $56,000K)
÷ $3,767,000K
= 0.42
The cash ratio for BorgWarner Inc has shown some fluctuations over the past eight quarters. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was 0.48, reflecting a strong ability to meet short-term obligations with available cash. This marked an improvement compared to the previous quarter's ratio of 0.34. However, the ratio was lower than in Q2 2023, where it stood at 0.27.
Looking at the trend over the past year, the cash ratio has generally been above 0.30, indicating that BorgWarner Inc has maintained a sufficient level of liquidity to cover its short-term obligations. The ratios from Q1 to Q3 2022 were higher, ranging from 0.46 to 0.40, suggesting a stronger liquidity position during that period.
Overall, BorgWarner Inc's cash ratio has shown variability but has generally remained at levels indicating a reasonable ability to meet short-term obligations with cash on hand. It is important for the company to monitor and manage its liquidity to ensure it can continue to meet its financial commitments.
Peer comparison
Dec 31, 2023