BorgWarner Inc (BWA)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.79 | 1.84 | 1.62 | 1.54 | 1.65 | 1.65 | 1.62 | 1.59 | 1.56 | 1.72 | 1.77 | 1.72 | 1.74 | 1.78 | 1.69 | 1.68 | 1.62 | 2.35 | 2.36 | 1.76 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,521,000K ÷ $3,646,000K
= 1.79
The current ratio of BorgWarner Inc has shown some fluctuation over the periods under consideration. It increased from 1.76 as of March 31, 2020, to reach a peak of 2.36 by June 30, 2020, indicating a strong ability to cover its short-term obligations with current assets. However, the ratio decreased to 1.62 by December 31, 2020, which might have raised concerns about the company's liquidity position. Subsequently, there were varying levels observed in the current ratio, with fluctuations but generally hovering around the range of 1.60 to 1.80 up to December 31, 2024.
Overall, the current ratio indicates BorgWarner Inc's ability to cover its short-term liabilities with its current assets. While the ratio has experienced fluctuations, it has generally remained within an acceptable range. It is important for stakeholders to monitor the trend of the current ratio over time to assess the company's liquidity position effectively.
Peer comparison
Dec 31, 2024