BorgWarner Inc (BWA)

Solvency ratios

	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
Debt-to-assets ratio	0.26	0.26	0.24	0.24	0.24	0.25	0.26	0.25	0.26	0.26	0.26	0.23	0.23	0.26	0.27	0.18	0.17	0.16	0.19	0.19
Debt-to-capital ratio	0.39	0.39	0.36	0.36	0.36	0.38	0.38	0.37	0.38	0.39	0.40	0.37	0.37	0.37	0.37	0.26	0.26	0.27	0.31	0.31
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
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

The solvency ratios of BorgWarner Inc over the past several quarters indicate a relatively stable financial position in terms of debt management. The Debt-to-assets ratio has been consistent around 0.25 to 0.26, suggesting that the company's total debt level compared to its total assets has been well-managed and relatively low. This indicates that BorgWarner Inc relies more on equity financing rather than debt to fund its operations.

The Debt-to-capital ratio has also remained steady at around 0.36 to 0.39, showing a consistent proportion of debt and equity in the company's capital structure. This is indicative of a balanced mix of sources of funding and implies limited financial risk associated with excessive leverage.

The Debt-to-equity ratio has ranged from 0.56 to 0.65, reflecting BorgWarner Inc's reliance on debt financing compared to equity. While this ratio has slightly increased in recent quarters, it remains within reasonable levels and does not indicate a concerning level of leverage.

The Financial leverage ratio, which measures the overall debt level in relation to equity, has also shown stability around 2.30 to 2.48. This indicates that BorgWarner Inc's capital structure is primarily made up of equity and a moderate amount of debt, with the company managing its financial leverage effectively.

Overall, the solvency ratios of BorgWarner Inc demonstrate prudent debt management practices and a solid financial position, with a balanced approach to capital structure and a relatively low level of financial risk.

Coverage ratios

	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
Interest coverage	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	81.44	58.34	54.11	51.90

The interest coverage ratio for BorgWarner Inc has shown fluctuation over the past eight quarters. The highest interest coverage ratio was observed in Q3 2023 at 121.00, indicating that the company generated significant operating income relative to its interest expenses during that period. This suggests a strong ability to meet its interest obligations from its operating earnings.

The interest coverage ratio remained consistently above 15 in each quarter, which generally indicates a healthy financial position where the company is comfortably able to cover its interest payments. The lowest interest coverage ratio was recorded in Q1 2022 at 15.11, which still indicates a reasonable level of interest payment coverage.

Overall, BorgWarner Inc has maintained a robust interest coverage ratio across the quarters, reflecting the company's ability to effectively manage its debt obligations and generate sufficient operating income to cover its interest expenses.