BWANEUTRAL

BWA Current Ratio Analysis

2.13x

Higher than 83% of Consumer Cyclical sector peers

Updated 78h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.13x means BorgWarner has $2.13 in current assets for every $1 of short-term liabilities, indicating it can comfortably cover upcoming obligations.

Sector Performance

83th percentile

BWA

2.13x

Sector Median

1.44x

Sector Avg

3.21x

Prior Period

2.07x(Apr 2026)

↑ Improving

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Deep Analysis

The current ratio of 2.13x means BorgWarner has $2.13 in current assets for every $1 of short-term liabilities, indicating it can comfortably cover upcoming obligations.

Compared to the consumer cyclical sector median of 1.44x, BorgWarner’s ratio places it in the 80th percentile among peers, reflecting above-average liquidity. Trend data is not available — the year-over-year change, quarter-over-quarter change, and last eight quarters are all reported as N/A, so no directional shift can be assessed. The combination of a high current ratio with no trend information suggests the company is in a strong short-term financial position, but the lack of change data limits conclusions about improving or deteriorating liquidity. This metric supports the overall NEUTRAL verdict because the liquidity strength is a positive factor, yet without a trend it neither reinforces a bullish nor bearish case beyond the existing assessment.

Frequently Asked Questions

What does the Current Ratio tell investors about BWA?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does BWA's Current Ratio compare to its sector?

BWA's Current Ratio of 2.13x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 83th percentile.

Who are BWA's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), ROST (1.54x), AEO (1.55x), SE (1.58x), PVH (1.68x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.