BorgWarner Inc (BWA)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,094,000 | 2,000,000 | 1,288,000 | 1,037,000 | 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 |
| Short-term investments | US$ in thousands | — | 38,000 | — | 55,000 | 56,000 | — | — | — | 87,000 | — | — | — | — | 513,000 | 546,000 | 557,000 | 820,000 | 305,000 | — | — |
| Receivables | US$ in thousands | 2,843,000 | 3,215,000 | 3,111,000 | 3,289,000 | 3,109,000 | 3,351,000 | 3,856,000 | 3,566,000 | 2,471,000 | 3,363,000 | 3,134,000 | 3,166,000 | 2,898,000 | 2,890,000 | 3,063,000 | 3,153,000 | 2,919,000 | 1,977,000 | 1,535,000 | 1,735,000 |
| 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 |
| Quick ratio | 1.35 | 1.41 | 1.19 | 1.13 | 1.25 | 1.20 | 1.11 | 1.09 | 0.92 | 1.21 | 1.24 | 1.21 | 1.25 | 1.35 | 1.34 | 1.39 | 1.41 | 2.00 | 1.80 | 1.24 |
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 fluctuated over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio started at 1.24 on March 31, 2020, indicating that the company had $1.24 of liquid assets for every $1 of current liabilities. The ratio increased to 2.00 by September 30, 2020, which could indicate improved liquidity. However, the ratio decreased to 1.21 by September 30, 2022, possibly suggesting a decline in the company's ability to cover its short-term obligations with liquid assets.
Thereafter, the quick ratio fluctuated within a range, reaching 1.09 on March 31, 2023, a low point during the period. The ratio improved slightly to 1.19 by June 30, 2024, but then increased significantly to 1.41 by September 30, 2024. This increase suggests an improvement in the company's liquidity position at that point in time.
Overall, BorgWarner Inc's quick ratio has shown variability, with some fluctuations indicating changes in the company's liquidity position over the period under review. It is important for stakeholders to continue monitoring this ratio to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024