BorgWarner Inc (BWA)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,763,000 | 3,707,000 | 4,140,000 | 4,261,000 | 3,738,000 |
| Total assets | US$ in thousands | 13,993,000 | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 |
| Debt-to-assets ratio | 0.27 | 0.26 | 0.24 | 0.26 | 0.23 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,763,000K ÷ $13,993,000K
= 0.27
The debt-to-assets ratio for BorgWarner Inc has shown a gradual increase over the years based on the provided data. Starting at 0.23 in December 31, 2020, the ratio has steadily climbed to 0.27 by December 31, 2024. This indicates that the company's level of debt in relation to its total assets has been on the rise.
A higher debt-to-assets ratio signifies that a larger portion of the company's assets is financed through debt rather than equity. While a moderate increase in this ratio may indicate growth and expansion activities, it also suggests a higher financial risk and dependency on debt financing.
It is important for investors and stakeholders to monitor this trend closely to assess BorgWarner Inc's financial stability and evaluate the potential impact of its debt levels on long-term sustainability and profitability.
Peer comparison
Dec 31, 2024