BorgWarner Inc (BWA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.79 | 1.65 | 1.56 | 1.74 | 1.62 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,521,000K ÷ $3,646,000K
= 1.79
Based on the provided data, BorgWarner Inc's current ratio has shown a generally positive trend over the years, increasing from 1.62 in December 2020 to 1.79 by December 2024. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of liquidity. BorgWarner Inc's current ratio has consistently remained above 1 over the years, indicating that the company is able to cover its short-term liabilities comfortably.
The upward trend in the current ratio from 2020 to 2024 suggests that BorgWarner Inc has been effectively managing its current assets and liabilities, potentially improving its liquidity position. It is important for investors and creditors to monitor this ratio to assess the company's short-term financial health and ability to meet its obligations as they come due.
Peer comparison
Dec 31, 2024