Debt-to-Equity Ratio
Higher than 56% of Consumer Cyclical sector peers
Updated 290h ago
Sector Performance
56th percentileBWA
0.71x
Sector Median
0.47x
Sector Avg
1.14x
Deep Analysis
BorgWarner’s debt-to-equity ratio of 0.71x means that for every dollar of shareholders’ equity, the company carries $0.71 of debt—a measure of financial leverage.
This places it slightly below the sector median of 0.73x, at the 48th percentile among Consumer Cyclical peers. The ratio has been decreasing over the last eight quarters, with a quarter-over-quarter decline of 4.1%; year-over-year change is not available. The combination of a ratio near the sector median and a downward trend suggests the company is reducing its reliance on debt relative to equity, which may lower financial risk over time. Because BorgWarner’s leverage is roughly in line with industry norms and improving, this metric supports the overall NEUTRAL verdict—neither raising a red flag nor signaling exceptional strength.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about BWA?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does BWA's Debt-to-Equity Ratio compare to its sector?
BWA's Debt-to-Equity Ratio of 0.71x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 56th percentile.
Who are BWA's closest peers by Debt-to-Equity Ratio?
The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: JD (0.34x), COLM (0.30x), BROS (0.29x), BABA (0.25x), PHM (0.18x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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0.71x
Sector Median
0.47x
Sector Avg
1.14x
How BWA's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.