BorgWarner Inc (BWA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,217,000 | 6,617,000 | 6,597,000 | 6,167,000 | 3,836,000 |
| Total current liabilities | US$ in thousands | 3,767,000 | 4,236,000 | 3,798,000 | 3,810,000 | 2,329,000 |
| Current ratio | 1.65 | 1.56 | 1.74 | 1.62 | 1.65 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,217,000K ÷ $3,767,000K
= 1.65
Based on the data provided, BorgWarner Inc's current ratio has fluctuated over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position as it suggests the company has more current assets available to cover its current liabilities.
In 2023, BorgWarner Inc's current ratio stands at 1.65, indicating that for every dollar of current liabilities, the company has $1.65 in current assets. This represents an improvement from the previous year (1.56 in 2022) but is lower than the ratio reported in 2021 (1.76). The current ratio in 2023 is also slightly higher than in 2019 (1.65) and 2020 (1.62).
Overall, BorgWarner Inc's current ratio has shown relative stability over the past five years, with fluctuations within a narrow range. While the current ratio is an important indicator of short-term liquidity, it is essential to consider other financial metrics and industry benchmarks for a comprehensive assessment of the company's financial health.
Peer comparison
Dec 31, 2023