BorgWarner Inc (BWA)

Debt-to-equity 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-equity ratio		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	0.36	0.37	0.44	0.45

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,707,000K ÷ $5,828,000K
= 0.64

The debt-to-equity ratio of BorgWarner Inc has remained relatively stable over the past eight quarters, ranging from 0.56 to 0.65. This indicates that the company has been maintaining a moderate level of debt relative to its equity during this period. A ratio below 1.0 typically suggests that the company has a higher proportion of equity financing compared to debt financing, which can be viewed positively by investors as it indicates lower financial risk.

The slight fluctuations in the debt-to-equity ratio may be attributed to changes in the company's capital structure, borrowing activities, or equity management strategies. Overall, a consistent debt-to-equity ratio close to 0.60 indicates a balanced mix of debt and equity in BorgWarner Inc's capital structure, which could be viewed as a prudent financial approach that provides stability and flexibility for the company.