Badger Meter Inc (BMI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 707,639 | 566,120 | 505,218 | 425,514 | 424,372 |
| Property, plant and equipment | US$ in thousands | 73,878 | 73,542 | 78,050 | 82,705 | 85,761 |
| Fixed asset turnover | 9.58 | 7.70 | 6.47 | 5.14 | 4.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $707,639K ÷ $73,878K
= 9.58
Badger Meter Inc.'s fixed asset turnover has shown consistent improvement over the past five years, reflecting the company's efficiency in generating sales revenue from its investment in fixed assets. The ratio has increased from 4.95 in 2019 to 9.52 in 2023, indicating that the company is generating $9.52 in sales for every $1 invested in fixed assets.
The trend suggests that Badger Meter Inc. has been effectively utilizing its fixed assets to drive revenue growth and enhance operational efficiency. The progressive improvement in fixed asset turnover ratios signifies enhanced productivity and asset utilization within the organization, which is a positive indicator of the company's financial health.
Overall, the increasing trend in Badger Meter Inc.'s fixed asset turnover ratio indicates the company's ability to efficiently manage its fixed assets to drive sales growth over the years. It reflects effective operational management and optimal resource allocation within the company.
Peer comparison
Dec 31, 2023