BWA Quick Ratio Analysis
Higher than 89% of Consumer Cyclical sector peers
Updated 155h ago·SEC filings & market data
Key Takeaway
The quick ratio measures whether a company can cover near-term liabilities with its most liquid assets, excluding inventory; BorgWarner's 1.65x means it holds $1.65 in cash, marketable securities, and receivables for every $1 of current liabilities.
Sector Performance
89th percentileBWA
1.65x
Sector Median
0.61x
Sector Avg
2.25x
Prior Period
1.64x(Jul 2026)
Deep Analysis
The quick ratio measures whether a company can cover near-term liabilities with its most liquid assets, excluding inventory; BorgWarner's 1.65x means it holds $1.65 in cash, marketable securities, and receivables for every $1 of current liabilities.
This is far above the sector median of 0.62x, placing the firm in the 90th percentile among Consumer Cyclical peers. The 8-quarter trend is not available, and the year-over-year change is also N/A, but the quarter-over-quarter change is +0.6%, with the latest value up from 1.64x. A high level combined with a slight quarterly rise suggests liquidity risk is minimal and the company has a cushion against short-term obligations. For an investor, this reduces downside liquidity risk, though it does not address broader valuation or growth concerns. This metric supports the overall NEUTRAL verdict by confirming financial stability without signaling an upside catalyst.
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 0.61x, placing it in the 89th percentile.
Who are BWA's closest peers by Quick Ratio?
The closest Consumer Cyclical peers by Quick Ratio include: PDD (0.61x), PHM (0.54x), TSLA (0.54x), YUM (0.49x), TCS (0.45x).
Learn More About Quick Ratio
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
0.61x
Sector Avg
2.25x
How BWA's Quick Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.