BorgWarner Inc (BWA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,094,000 | 1,534,000 | 1,333,000 | 1,841,000 | 1,650,000 |
| Short-term investments | US$ in thousands | — | 56,000 | 87,000 | — | 820,000 |
| Receivables | US$ in thousands | 2,843,000 | 3,109,000 | 2,471,000 | 2,898,000 | 2,919,000 |
| Total current liabilities | US$ in thousands | 3,646,000 | 3,767,000 | 4,236,000 | 3,798,000 | 3,810,000 |
| Quick ratio | 1.35 | 1.25 | 0.92 | 1.25 | 1.41 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,094,000K
+ $—K
+ $2,843,000K)
÷ $3,646,000K
= 1.35
The quick ratio of BorgWarner Inc has shown some fluctuations over the past five years.
As of December 31, 2020, the quick ratio was 1.41, indicating that the company had $1.41 in liquid assets available to cover each dollar of current liabilities. This suggests a strong ability to meet its short-term obligations without relying heavily on inventory.
By December 31, 2021, the quick ratio decreased to 1.25, which is still considered a healthy level. The decline may indicate a slight reduction in the liquidity position compared to the previous year.
However, by December 31, 2022, the quick ratio dropped to 0.92, signaling a potential liquidity strain. A quick ratio below 1 implies that the company may struggle to meet its short-term obligations with its existing liquid assets alone.
The quick ratio improved to 1.25 by December 31, 2023, which is a positive sign indicating a better ability to cover current liabilities. This rebound suggests that BorgWarner Inc may have taken steps to enhance its liquidity position.
As of the most recent data on December 31, 2024, the quick ratio increased further to 1.35, indicating an improvement in liquidity compared to the previous year.
Overall, while the quick ratio fluctuations in the past years may suggest some variability in BorgWarner Inc's liquidity position, the company has generally maintained a reasonable ability to meet its short-term obligations with its liquid assets.
Peer comparison
Dec 31, 2024