BorgWarner Inc (BWA)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 832,000 | 916,000 | 710,000 | 494,000 |
| Short-term investments | US$ in thousands | 56,000 | — | — | — | 87,000 | — | — | — | — | 513,000 | 546,000 | 557,000 | 820,000 | 305,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 1,921,000 | 1,983,000 | 2,063,000 | 2,065,000 |
| Total current liabilities | US$ in thousands | 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 | 2,329,000 | 2,525,000 | 2,313,000 | 2,299,000 |
| Quick ratio | 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 | 1.18 | 1.15 | 1.20 | 1.11 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,534,000K
+ $56,000K
+ $3,109,000K)
÷ $3,767,000K
= 1.25
The quick ratio of BorgWarner Inc has been fluctuating over the past eight quarters. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2023, the quick ratio was 1.30, slightly higher than the previous quarter at 1.28. This indicates that BorgWarner Inc has $1.30 of liquid assets available to cover each dollar of current liabilities, showing a strong ability to meet short-term obligations.
Looking back to Q1 2023, the quick ratio was 1.16, showing a slight improvement in liquidity by Q4 2023. However, it is important to note that the ratio has been consistently above 1.0 in all quarters, indicating that BorgWarner Inc has a healthy level of liquid assets to cover its short-term obligations.
Overall, the trend in the quick ratio suggests that BorgWarner Inc has been maintaining a strong liquidity position over the past year, with a slight uptick in Q4 2023 compared to the earlier quarters. It is important for the company to continue monitoring and managing its liquidity effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023