BorgWarner Inc (BWA)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,763,000 | 4,195,000 | 3,283,000 | 3,295,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,532,000 | 6,156,000 | 6,093,000 | 5,841,000 | 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 |
| Debt-to-equity ratio | 0.68 | 0.68 | 0.54 | 0.56 | 0.64 | 0.64 | 0.56 | 0.56 | 0.57 | 0.60 | 0.60 | 0.60 | 0.61 | 0.65 | 0.65 | 0.58 | 0.58 | 0.59 | 0.60 | 0.35 |
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 fluctuations over the periods presented. It decreased from 0.35 as of March 31, 2020, to 0.54 as of June 30, 2024, indicating a decrease in the company's reliance on debt relative to equity over this time frame.
The ratio generally remained below 1, suggesting that BorgWarner has been financing its operations more through equity than debt. However, the ratio increased in some quarters, such as reaching 0.68 as of September 30, 2024, indicating a higher level of debt compared to equity at that point in time.
Overall, monitoring the debt-to-equity ratio helps assess BorgWarner's financial leverage and risk exposure, as a higher ratio may indicate increased financial risk due to higher debt levels. Conversely, a lower ratio is often seen as more favorable as it indicates a lower reliance on debt financing.
Peer comparison
Dec 31, 2024