Badger Meter Inc (BMI)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 706,241 | 671,125 | 631,849 | 592,988 | 565,654 | 554,078 | 534,685 | 519,723 | 505,169 | 481,750 | 466,659 | 434,884 | 425,526 | 420,753 | 415,700 | 428,070 | 424,345 | 421,202 | 422,957 | 433,148 |
| Property, plant and equipment | US$ in thousands | 73,878 | 74,439 | 74,706 | 74,525 | 73,542 | 72,369 | 74,040 | 76,069 | 78,050 | 79,941 | 81,582 | 82,084 | 82,705 | 82,435 | 83,190 | 84,570 | 85,761 | 86,657 | 88,512 | 89,282 |
| Fixed asset turnover | 9.56 | 9.02 | 8.46 | 7.96 | 7.69 | 7.66 | 7.22 | 6.83 | 6.47 | 6.03 | 5.72 | 5.30 | 5.15 | 5.10 | 5.00 | 5.06 | 4.95 | 4.86 | 4.78 | 4.85 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $706,241K ÷ $73,878K
= 9.56
The fixed asset turnover ratio for Badger Meter Inc. has shown a consistent increasing trend over the past eight quarters. It has improved from 6.83 in Q1 2022 to 9.52 in Q4 2023, indicating that the company is generating more sales revenue relative to its investment in fixed assets. This suggests that Badger Meter has been utilizing its fixed assets more efficiently to generate revenue.
The trend of increasing fixed asset turnover ratio reflects positively on the management's ability to maximize the productivity of the company's fixed assets. A higher fixed asset turnover ratio indicates that Badger Meter is effectively using its fixed assets to generate sales, which is crucial for profitability and overall financial performance.
Overall, the consistent improvement in Badger Meter's fixed asset turnover ratio signals operational efficiency and effective asset utilization, which can lead to enhanced profitability and shareholder value in the long term.
Peer comparison
Dec 31, 2023