Current Ratio
Higher than 81% of Consumer Cyclical sector peers
Updated 128h ago
Sector Performance
81th percentileBWA
2.13x
Sector Median
1.44x
Sector Avg
2.69x
Deep Analysis
With a current ratio of 2.13x, BorgWarner holds $2.13 in current assets for every $1 of short-term liabilities, indicating the company has ample liquidity to cover its near-term obligations.
This figure sits well above the consumer cyclical sector median of 1.44x and places BorgWarner in the 81st percentile of sector peers, showing stronger liquidity than most competitors. Trend data is unavailable: both year-over-year and quarter-over-quarter changes are noted as N/A, and no historical values beyond the current reading were provided, so no direction can be inferred. The combination of a high liquidity level with no trend information means the metric signals low short-term default risk, but offers no insight into whether that strength is improving or deteriorating. This supports the overall NEUTRAL verdict: the current ratio itself is a positive safety factor, but the lack of trend keeps it from being either a bullish or bearish differentiator.
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 81th percentile.
Who are BWA's closest peers by Current Ratio?
The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), BROS (1.33x), SHAK (1.69x), MELI (1.16x), CHPT (1.15x).
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.
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2.13x
Sector Median
1.44x
Sector Avg
2.69x
How BWA's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.