Badger Meter Inc (BMI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.47 | 2.78 | 2.88 | 3.01 | 3.15 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.96 | 2.27 | 2.38 | 2.82 | 2.73 |
Based on the provided data for Badger Meter Inc, let's analyze the activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company is managing its inventory.
- The trend shows a slight decrease from 3.15 in 2020 to 2.78 in 2023 before rising to 3.47 in 2024.
- A lower ratio may suggest that the company is holding onto inventory for a longer period, which could tie up capital and increase storage costs.
2. Receivables Turnover:
- Unable to calculate due to missing data for receivables turnover.
- Typically, a higher receivables turnover reflects that the company is efficient in collecting payments from customers.
3. Payables Turnover:
- Unable to calculate due to missing data for payables turnover.
- The payables turnover ratio provides insight into how effectively the company pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales.
- The trend shows a decreasing trend from 2.73 in 2020 to 1.96 in 2024.
- A declining ratio may suggest that the company's working capital is not being effectively utilized to generate revenue.
Overall, from the available data, it appears that Badger Meter Inc has shown some fluctuations in its activity ratios. Further analysis incorporating additional data and industry benchmarks would provide a more comprehensive understanding of the company's operational efficiency and financial health.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.24 | 131.31 | 126.58 | 121.31 | 115.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of Badger Meter Inc provide insights into the efficiency of its operations in managing inventory, collecting receivables, and paying its liabilities.
1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days it takes for the company to sell its inventory.
- From December 31, 2020 (115.74 days) to December 31, 2024 (105.24 days), the trend shows a slight improvement in inventory management efficiency, as the number of days to sell inventory decreased over the period.
- A lower DOH indicates that the company is managing its inventory effectively, potentially reducing carrying costs and the risk of obsolete inventory.
2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for the company to collect on its sales.
- The data provided does not contain information on DSO for Badger Meter Inc, which limits the ability to assess the efficiency of the company in collecting receivables.
3. Number of Days of Payables:
- This ratio indicates the average number of days the company takes to pay its suppliers.
- The data does not include information on the Number of Days of Payables for Badger Meter Inc, making it difficult to analyze the efficiency of the company in managing its payables.
Overall, based on the available data on DOH, Badger Meter Inc has shown some improvement in managing its inventory efficiently by reducing the number of days it takes to sell its products. However, without information on DSO and the Number of Days of Payables, a comprehensive analysis of the company's overall activity ratios is limited.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.69 | 6.47 | 5.15 |
| Total asset turnover | 1.01 | 0.98 | 0.94 | 0.95 | 0.91 |
The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets. For Badger Meter Inc, the fixed asset turnover has shown a positive trend over the years, increasing from 5.15 in 2020 to 6.47 in 2021 and further to 7.69 in 2022. This indicates that the company is becoming more efficient in utilizing its fixed assets to generate sales.
However, it is worth noting that the fixed asset turnover ratio for 2023 and 2024 is not available. The lack of data for these years makes it difficult to assess the trend and performance continuity.
The total asset turnover ratio, on the other hand, reflects how well a company is using its total assets to generate revenue. Badger Meter Inc's total asset turnover has been relatively stable, showing a slight increase from 0.91 in 2020 to 1.01 in 2024, with fluctuations in between.
Overall, based on the available data, Badger Meter Inc has shown improvements in utilizing its fixed assets efficiently to generate revenue. However, the stability in total asset turnover indicates that the company's overall asset utilization efficiency has remained fairly consistent over the years.