BorgWarner Inc (BWA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,532,000 | 5,828,000 | 7,224,000 | 6,948,000 | 6,428,000 |
| Debt-to-capital ratio | 0.40 | 0.39 | 0.36 | 0.38 | 0.37 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,763,000K ÷ ($3,763,000K + $5,532,000K)
= 0.40
The debt-to-capital ratio of BorgWarner Inc has shown a slight upward trend over the past five years, moving from 0.37 in December 31, 2020 to 0.40 in December 31, 2024. This indicates that the company's reliance on debt as a source of financing relative to its capital base has been gradually increasing. While the ratio remains below 1, suggesting that a significant portion of the company's capital structure is still composed of equity, the upward trajectory may signal an increased risk associated with the company's debt levels. It is important for stakeholders to closely monitor this trend and assess BorgWarner Inc's ability to manage its debt obligations effectively in the future.
Peer comparison
Dec 31, 2024