BorgWarner Inc (BWA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,453,000 | 14,104,000 | 17,317,000 | 17,117,000 | 16,994,000 | 16,077,000 | 16,144,000 | 16,678,000 | 16,575,000 | 16,491,000 | 16,863,000 | 15,971,000 | 16,029,000 | 10,892,000 | 10,337,000 | 9,502,000 | 9,702,000 | 10,199,000 | 10,231,000 | 10,104,000 |
| 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 |
| Financial leverage ratio | 2.48 | 2.45 | 2.29 | 2.30 | 2.35 | 2.37 | 2.34 | 2.37 | 2.39 | 2.48 | 2.54 | 2.51 | 2.49 | 2.29 | 2.24 | 2.01 | 2.06 | 2.29 | 2.33 | 2.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,453,000K ÷ $5,828,000K
= 2.48
The financial leverage ratio of BorgWarner Inc has ranged between 2.29 to 2.48 over the past eight quarters. The ratio measures the proportion of the company's total assets that are financed by debt. A higher financial leverage ratio indicates a greater reliance on debt to fund operations and investments.
In the last quarter of 2023, the ratio reached its peak at 2.48, reflecting a higher level of debt relative to assets compared to the previous quarters. This could imply increased financial risk for BorgWarner Inc as higher debt levels can lead to higher interest payments and potentially limit financial flexibility.
Conversely, during the second quarter of 2023, the financial leverage ratio dropped to 2.29, indicating a lower reliance on debt financing. This could suggest a more conservative capital structure and lower financial risk for the company during that period.
Overall, the trend in BorgWarner Inc's financial leverage ratio shows some fluctuation but generally indicates a moderate to high level of financial leverage over the past two years. Investors and stakeholders may want to monitor this ratio closely to assess the company's debt management and risk exposure.
Peer comparison
Dec 31, 2023