BorgWarner Inc (BWA)

Debt-to-capital 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
Long-term debt	US$ in thousands	3,707,000	3,665,000	4,191,000	4,175,000	4,140,000	4,080,000	4,156,000	4,223,000	4,261,000	4,288,000	4,348,000	3,708,000	3,738,000	2,787,000	2,762,000	1,664,000	1,674,000	1,656,000	1,929,000	1,923,000
Total stockholders’ equity	US$ in thousands	5,828,000	5,768,000	7,551,000	7,441,000	7,224,000	6,775,000	6,889,000	7,050,000	6,948,000	6,646,000	6,649,000	6,367,000	6,428,000	4,757,000	4,611,000	4,724,000	4,706,000	4,457,000	4,394,000	4,274,000
Debt-to-capital ratio		0.39	0.39	0.36	0.36	0.36	0.38	0.38	0.37	0.38	0.39	0.40	0.37	0.37	0.37	0.37	0.26	0.26	0.27	0.31	0.31

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,707,000K ÷ ($3,707,000K + $5,828,000K)
= 0.39

The debt-to-capital ratio for BorgWarner Inc has remained relatively stable over the past eight quarters, fluctuating within a narrow range between 0.36 and 0.39. This indicates that the company's capital structure has been consistent in terms of the proportion of debt compared to total capital during this time period. Generally, a lower debt-to-capital ratio suggests lower financial risk, as the company relies less on debt financing. However, it is important to consider industry norms and company strategy when evaluating the significance of this ratio. In the case of BorgWarner Inc, the consistent range of the debt-to-capital ratio may indicate a deliberate and balanced approach to funding its operations and growth initiatives.