Badger Meter Inc (BMI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.47 | 3.07 | 2.94 | 2.80 | 2.78 | 2.75 | 2.65 | 2.72 | 2.88 | 2.96 | 2.90 | 3.04 | 3.01 | 3.13 | 3.06 | 3.09 | 3.15 | 3.32 | 3.30 | 3.52 | |
| DOH | days | 105.24 | 119.07 | 123.96 | 130.15 | 131.31 | 132.69 | 137.75 | 134.11 | 126.58 | 123.36 | 125.84 | 120.17 | 121.31 | 116.75 | 119.17 | 118.01 | 115.74 | 110.00 | 110.49 | 103.75 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.47
= 105.24
The days of inventory on hand (DOH) for Badger Meter Inc have shown fluctuating trends over the years, ranging from 103.75 days to 137.75 days. The analysis of DOH reveals that the company has experienced some variability in managing its inventory levels efficiently. Overall, the trend in DOH has been gradually increasing over the years, indicating that it takes the company a longer time to convert its inventory into sales.
A higher DOH value suggests that the company holds inventory for a longer period, which may tie up working capital and increase carrying costs. On the other hand, a lower DOH value signifies that the company effectively manages its inventory, reduces excess stock, and minimizes the risk of inventory obsolescence.
It is essential for Badger Meter Inc to monitor its inventory turnover and closely manage its inventory levels to strike a balance between ensuring product availability for customers and avoiding excess inventory costs. By optimizing its inventory management practices, the company can enhance operational efficiency, reduce carrying costs, and improve overall profitability.
Peer comparison
Dec 31, 2024