Badger Meter Inc (BMI)
Payables 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 |
| Payables | US$ in thousands | 81,807 | 84,997 | 81,104 | 79,549 | 71,440 | 65,462 | 61,597 | 52,437 | 41,859 | 42,408 | 41,252 | 40,014 | 34,923 | 37,791 | 35,449 | 35,915 | 31,523 | 32,363 | 29,556 | 25,983 |
| Payables turnover | 7.26 | 6.69 | 6.63 | 6.38 | 6.82 | 7.28 | 7.49 | 8.58 | 10.43 | 9.81 | 9.72 | 9.38 | 10.53 | 9.62 | 10.20 | 10.35 | 11.73 | 11.38 | 12.55 | 13.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $594,143K ÷ $81,807K
= 7.26
The payables turnover ratio for Badger Meter Inc. has shown some variability over the past eight quarters. The trend indicates fluctuations in how efficiently the company is managing its trade payables.
The payables turnover ratio measures how many times a company pays off its suppliers within a specific period. A higher ratio generally indicates that the company is paying off its suppliers more quickly, which may be a positive signal of strong liquidity and good supplier relationships.
In Q1 and Q2 of 2022, Badger Meter Inc. had relatively high payables turnover ratios of 5.97 and 5.25, respectively. This suggests that the company was efficient in settling its payables during those periods. However, in the following quarters, there was a decline in the payables turnover ratio, with Q1 2023 showing the lowest value of 4.53.
Overall, the payables turnover ratios have remained fairly stable in the range of 4.73 to 5.22 over the past two years, indicating that Badger Meter Inc. has been consistently managing its trade payables effectively. However, management may want to closely monitor the trend in payables turnover to ensure efficient payment practices and maintain good relationships with suppliers.
Peer comparison
Dec 31, 2023