Badger Meter Inc (BMI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 594,143 | 568,632 | 537,999 | 507,388 | 486,873 | 476,311 | 461,471 | 449,920 | 436,475 | 416,155 | 400,930 | 375,191 | 367,589 | 363,434 | 361,562 | 371,616 | 369,677 | 368,367 | 371,062 | 354,697 |
| Inventory | US$ in thousands | 153,674 | 147,788 | 144,749 | 132,344 | 119,856 | 113,608 | 111,437 | 103,020 | 99,611 | 91,824 | 90,793 | 84,251 | 81,586 | 76,987 | 76,846 | 74,430 | 81,948 | 84,835 | 83,319 | 80,554 |
| Inventory turnover | 3.87 | 3.85 | 3.72 | 3.83 | 4.06 | 4.19 | 4.14 | 4.37 | 4.38 | 4.53 | 4.42 | 4.45 | 4.51 | 4.72 | 4.71 | 4.99 | 4.51 | 4.34 | 4.45 | 4.40 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $594,143K ÷ $153,674K
= 3.87
Analyzing the inventory turnover of Badger Meter Inc. over the past eight quarters, we observe a relatively stable trend with minor fluctuations. The inventory turnover ratios ranged from 2.65 to 3.04, indicating that, on average, the company's inventory was sold and replenished approximately 2.65 to 3.04 times per year.
The company's ability to manage its inventory efficiently is evident, as the ratios consistently stayed within a close range, demonstrating a consistent turnover rate. However, it is worth noting a slight decrease in inventory turnover from Q4 2022 to Q2 2023, followed by a slight increase in Q3 2023 and Q4 2023. These fluctuations may be a result of seasonal variations or changes in business operations.
Overall, Badger Meter Inc.'s inventory turnover ratios suggest that the company is effectively managing its inventory levels and successfully converting inventory into sales. A higher inventory turnover ratio generally indicates a shorter time for a company to sell its inventory, which can be indicative of efficient operations and effective liquidity management.
Peer comparison
Dec 31, 2023
Dec 31, 2023