Quick Ratio
Higher than 87% of Consumer Cyclical sector peers
Updated 24h ago
Sector Performance
87th percentileBWA
1.65x
Sector Median
0.80x
Sector Avg
1.98x
Deep Analysis
BorgWarner’s quick ratio of 1.65x means the company has $1.65 in liquid assets—cash, marketable securities, and receivables—for every $1 of short-term liabilities, indicating strong ability to cover near-term obligations.
This well exceeds the Consumer Cyclical sector median of 0.79x, placing BorgWarner in the 87th percentile among its peers. The ratio has been perfectly steady over the past eight quarters, with no change year-over-year or quarter-over-quarter (both +0.0%). A high, stable quick ratio suggests low liquidity risk and consistent financial discipline, but the flat trend also implies no recent improvement in efficiency or cash management. The combination of an above-average level and unchanged trajectory offers limited upside from a liquidity standpoint, reinforcing a neutral investment view rather than signaling a clear opportunity or hazard. This metric supports the NEUTRAL verdict: it is a solid, unremarkable result that does not alter the stock’s overall risk profile.
Frequently Asked Questions
What does the Quick Ratio tell investors about BWA?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does BWA's Quick Ratio compare to its sector?
BWA's Quick Ratio of 1.65x compares to a Consumer Cyclical sector median of 0.80x, placing it in the 87th percentile.
Who are BWA's closest peers by Quick Ratio?
The closest Consumer Cyclical peers by Quick Ratio include: CHPT (0.59x), W (0.59x), AEO (0.57x), MELI (0.55x), JACK (0.54x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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1.65x
Sector Median
0.80x
Sector Avg
1.98x
How BWA's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.