BorgWarner (BorgWarner) Debt-to-Equity

: 0.67 (As of Dec. 2023)

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BorgWarner's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $110 Mil. BorgWarner's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $3,819 Mil. BorgWarner's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $5,828 Mil. BorgWarner's debt to equity for the quarter that ended in Dec. 2023 was 0.67.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for BorgWarner's Debt-to-Equity or its related term are showing as below:

BWA' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.37 Med: 0.61 Max: 0.72
Current: 0.67

During the past 13 years, the highest Debt-to-Equity Ratio of BorgWarner was 0.72. The lowest was 0.37. And the median was 0.61.

BWA's Debt-to-Equity is ranked worse than
61.84% of 1174 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs BWA: 0.67

BorgWarner Debt-to-Equity Historical Data

The historical data trend for BorgWarner's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BorgWarner Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.44

0.62

0.65

0.60

0.67

BorgWarner Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity																0.60	0.60	0.59	0.67	0.67

Competitive Comparison

For the Auto Parts subindustry, BorgWarner's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

BorgWarner Debt-to-Equity Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where BorgWarner's Debt-to-Equity falls into.

BorgWarner Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

BorgWarner's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(110	+	3819)	/	5828
	=	0.67

BorgWarner's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(110	+	3819)	/	5828
	=	0.67

BorgWarner (NYSE:BWA) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

BorgWarner Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of BorgWarner's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

BorgWarner (BorgWarner) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » BorgWarner Inc (NYSE:BWA) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

BGW:Germany BGW:Germany

Address

3850 Hamlin Road, Auburn Hills, MI, USA, 48326

Website

https://www.borgwarner.com

BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.

Executives

Stefan Demmerle	officer: Vice President	BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Joseph F. Fadool	officer: Vice President	BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Alexis P Michas	director	940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Tonit M Calaway	officer: EVP and Chief HR Officer	HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Isabelle Mckenzie	officer: Vice President	3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Tania Wingfield	officer: EVP & CHRO	3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Daniel Etue	officer: VP & Controller	3850 W. HAMLIN RD, AUBURN HILLS MI 48326
Frederic Lissalde	officer: Vice President	BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Hau N Thai-tang	director	ONE AMERICAN ROAD, DEARBORN MI 48126
Sailaja Shankar	director	3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Felecia J. Pryor	officer: EVP & CHRO	3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Sara A. Greenstein	director	600 GRANT STREET, PITTSBURGH PA 15219
Paul Arthur Farrell	officer: VP & Chief Strategy Officer	3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Volker Weng	officer: Vice President	3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Davide Girelli	officer: Vice President	3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326