BorgWarner Inc (BWA)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 546,000 | 1,143,000 | 1,145,000 | 1,231,000 | 1,276,000 | 1,625,000 | 1,618,000 | 1,507,000 | 1,519,000 | 1,067,000 | 1,055,000 | 1,100,000 | 1,151,000 | 1,187,000 | 1,218,000 | 823,000 | 618,000 | 882,000 | 874,000 | 1,237,000 |
Interest expense (ttm) | US$ in thousands | 99,000 | 89,000 | 86,000 | 90,000 | 95,000 | 100,000 | 97,000 | 97,000 | 96,000 | 91,000 | 94,000 | 115,000 | 117,000 | 86,000 | 66,000 | 25,000 | 8,000 | 9,000 | 12,000 | 15,000 |
Interest coverage | 5.52 | 12.84 | 13.31 | 13.68 | 13.43 | 16.25 | 16.68 | 15.54 | 15.82 | 11.73 | 11.22 | 9.57 | 9.84 | 13.80 | 18.45 | 32.92 | 77.25 | 98.00 | 72.83 | 82.47 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $546,000K ÷ $99,000K
= 5.52
The interest coverage ratio for BorgWarner Inc has fluctuated over the periods provided. It started at a healthy level of 82.47 in March 2020, indicating the company's ability to cover interest expenses 82.47 times with its operating income. However, the ratio gradually declined to a low of 5.52 in December 2024, which raises concerns about the company's ability to cover its interest payments. Overall, the decreasing trend in the interest coverage ratio suggests a potential strain on BorgWarner Inc's financial health and ability to service its debt obligations over time.
Peer comparison
Dec 31, 2024
Company name
Symbol
Interest coverage
BorgWarner Inc
BWA
5.52
Adient PLC
ADNT
1.25
American Axle & Manufacturing
AXL
0.88
Aptiv PLC
APTV
7.10
Autoliv Inc
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7.57
Dana Inc
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2.03
Dorman Products Inc
DORM
4.51
Gentex Corporation
GNTX
—
Gentherm Inc
THRM
6.99
LCI Industries
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3.05
Lear Corporation
LEA
8.45