BorgWarner Inc (BWA)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,707,000 | 4,140,000 | 4,261,000 | 3,738,000 | 1,674,000 |
| Total assets | US$ in thousands | 14,453,000 | 16,994,000 | 16,575,000 | 16,029,000 | 9,702,000 |
| Debt-to-assets ratio | 0.26 | 0.24 | 0.26 | 0.23 | 0.17 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,707,000K ÷ $14,453,000K
= 0.26
The debt-to-assets ratio of BorgWarner Inc has been relatively stable over the past five years, ranging from 0.20 to 0.26. This indicates that, on average, the company finances around 20% to 26% of its assets through debt, with the remainder funded through equity.
The gradual increase in the debt-to-assets ratio from 2019 to 2023 suggests that BorgWarner Inc may have taken on slightly more debt relative to its assets over time. However, the ratio remains at a reasonable level, indicating that the company has a relatively conservative approach to debt financing.
Overall, the trend in BorgWarner Inc's debt-to-assets ratio suggests a balanced mix of debt and equity in its capital structure, which may indicate a manageable level of financial risk for the company.
Peer comparison
Dec 31, 2023