BorgWarner Inc (BWA)
Debt-to-equity 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-equity ratio | 0.68 | 0.64 | 0.57 | 0.61 | 0.58 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,763,000K ÷ $5,532,000K
= 0.68
The debt-to-equity ratio of BorgWarner Inc has shown a fluctuating trend over the past five years. In December 2020, the ratio stood at 0.58, indicating a moderate level of debt relative to equity. Subsequently, the ratio slightly increased to 0.61 by the end of 2021. However, in 2022, there was a slight decrease in the ratio to 0.57, suggesting a lower reliance on debt financing compared to the previous year.
In the following years, the debt-to-equity ratio continued to increase, reaching 0.64 by the end of 2023 and further rising to 0.68 by December 2024. This upward trend suggests that the company may be taking on more debt relative to equity, potentially increasing its financial leverage.
Overall, the analysis of BorgWarner Inc's debt-to-equity ratio indicates a changing capital structure over the years, with a slight increase in leverage in the later years of the period under review.
Peer comparison
Dec 31, 2024