Badger Meter Inc (BMI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 594,143 | 486,873 | 436,475 | 367,588 | 369,677 |
| Inventory | US$ in thousands | 153,674 | 119,856 | 99,611 | 81,586 | 81,948 |
| Inventory turnover | 3.87 | 4.06 | 4.38 | 4.51 | 4.51 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $594,143K ÷ $153,674K
= 3.87
The inventory turnover ratio of Badger Meter Inc. has shown a slight declining trend over the past five years, decreasing from 3.19 in 2019 to 2.78 in 2023. This indicates that the company's efficiency in managing its inventory has decreased slightly over time. A lower inventory turnover ratio could imply that the company is holding onto its inventory for a longer period before selling it, which may tie up more capital and potentially lead to higher storage costs or obsolescence risk. It is important for the company to assess its inventory management practices and possibly implement strategies to improve efficiency in this area going forward.
Peer comparison
Dec 31, 2023