Badger Meter Inc (BMI)
Payables 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 |
| Payables | US$ in thousands | 81,807 | 71,440 | 41,859 | 34,923 | 31,523 |
| Payables turnover | 7.26 | 6.82 | 10.43 | 10.53 | 11.73 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $594,143K ÷ $81,807K
= 7.26
Payables turnover measures how effectively a company manages its payments to suppliers by evaluating how many times a company pays off its accounts payable during a period. A higher payables turnover ratio typically indicates that a company is efficient in managing its payables.
Analyzing Badger Meter Inc.'s payables turnover over the past five years reveals fluctuations in the efficiency of its payables management. The payables turnover ratio has decreased from 8.28 in 2019 to 5.22 in 2023. This downward trend suggests a decreasing pace of payments to suppliers relative to the company's purchases. It may indicate potential delays in settling payables or changes in payment terms.
The average payables turnover ratio over the period is approximately 6.57, with the highest ratio recorded in 2019 at 8.28, indicating the most efficient management of payables during that year. Conversely, the lowest ratio of 5.22 in 2023 suggests a decline in payables management efficiency.
It's important for stakeholders to monitor payables turnover ratios closely as deviations from historical trends can signal changes in the company's liquidity, cash flow, and relationships with suppliers. Further analysis and comparison with industry benchmarks would provide additional insights into Badger Meter Inc.'s financial performance and operational efficiency.
Peer comparison
Dec 31, 2023