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BorgWarner Financial Strength

: 6 (As of Jun. 2022)
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BorgWarner has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

BorgWarner's Interest Coverage for the quarter that ended in Jun. 2022 was 14.90. BorgWarner's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.29. As of today, BorgWarner's Altman Z-Score is 2.57.


Competitive Comparison

For the Auto Parts subindustry, BorgWarner's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Financial Strength distribution charts can be found below:

* The bar in red indicates where BorgWarner's Financial Strength falls into.



BorgWarner Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

BorgWarner's Interest Expense for the months ended in Jun. 2022 was $-21 Mil. Its Operating Income for the months ended in Jun. 2022 was $313 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,303 Mil.

BorgWarner's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*313/-21
=14.90

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

BorgWarner's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(97 + 4303) / 15036
=0.29

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

BorgWarner has a Z-score of 2.57, indicating it is in Grey Zones. This implies that BorgWarner is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.57 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


BorgWarner  (NYSE:BWA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

BorgWarner has the Financial Strength Rank of 6.


BorgWarner Financial Strength Related Terms

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


BorgWarner Business Description

BorgWarner logo
Address
3850 Hamlin Road, Auburn Hills, MI, USA, 48326
BorgWarner is a Tier I auto-parts supplier with four operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, cabin heaters, battery heaters, and battery charging. The e-propulsion and drivetrain group produces e-motors, power electronics, control modules, software, automatic transmission components, and torque management products. The two remaining operating segments are the eponymous fuel injector and aftermarket groups. The company's largest customers are Ford and Volkswagen at 10% and 9% of 2021 revenue, respectively. Geographically, Europe accounted for 35% of 2021 revenue, while Asia was 35% and North America was 29%.
Executives
Greenstein Sara A. director 600 GRANT STREET PITTSBURGH PA 15219
Connors Nelda J director BOSTON SCIENTIFIC CORPORATION 300 BOSTON SCIENTIFIC WAY MARLBOROUGH MA 01752-1234
Haffner David S director
Ashmore Alex officer: Vice President C/O DELPHI TECHNOLOGIES PLC 1 ANGEL COURT, 10TH FLOOR LONDON X0 EC2R 7HJ
Girelli Davide officer: Vice President 3850 W. HAMLIN ROAD AUBURN HILLS MI 48326
Farrell Paul Arthur officer: VP & Chief Strategy Officer 3850 W. HAMLIN ROAD AUBURN HILLS MI 48326
Mcalmont Shaun director C/O LINCOLN EDUCATIONAL SERVICES CORP. 200 EXECUTIVE DRIVE, SUITE 340 WEST ORANGE NJ 07052
Etue Daniel officer: VP & Controller 3850 W. HAMLIN RD AUBURN HILLS MI 48326
Yilmaz Hakan officer: Vice President and CTO 3850 W. HAMLIN ROAD AUBURN HILLS MI 48326
Weng Volker officer: Vice President 3850 W. HAMLIN ROAD AUBURN HILLS MI 48326
Sato Vicki L director 940 WINTER STREET PERKINELMER, INC. LEGAL DEPARTMENT WALTHAM MA 02451
Carlson Jan director C/O AUTOLIV, INC. KLARABERGSVIADUKTEN 70, SECTION B7 STOCKHOLM V7 SE-111 64
Hanley Michael S director 5226 S. OAK COURT TOLEDO OH 43623
Cuneo Dennis C director 9227 CENTRE POINTE DRIVE WEST CHESTER OH 45069
Mckernan John R Jr director 300 SIXTH AVE 8TH FLOOR PITTSBURGH PA 75222

BorgWarner Headlines

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