Badger Meter Inc (BMI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 8.46 | 7.54 | 7.52 | 7.04 | 7.38 | 6.64 | 6.92 | 6.65 | 7.67 | 6.53 | 7.30 | 7.05 | 6.90 | 7.29 | 7.70 | 7.24 | 6.92 | 6.86 | 7.01 | 6.36 |
| 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 |
| Working capital turnover | 2.28 | 2.28 | 2.34 | 2.42 | 2.38 | 2.48 | 2.59 | 2.70 | 2.82 | 2.90 | 3.17 | 3.29 | 2.73 | 2.44 | 2.59 | 2.84 | 2.97 | 3.17 | 3.49 | 3.82 |
The activity ratios of Badger Meter Inc. provide valuable insights into the efficiency of the company's operations.
1. Inventory turnover:
- The inventory turnover ratio shows how efficiently the company is managing its inventory. Badger Meter Inc. has maintained relatively stable inventory turnover rates ranging from 2.65 to 2.96 over the past eight quarters.
- The gradual decline in inventory turnover may indicate the company is either managing its inventory more efficiently or facing challenges in selling its products.
2. Receivables turnover:
- The receivables turnover ratio measures how efficiently the company is collecting payments from its customers. Badger Meter Inc. has shown a consistent increase in receivables turnover from 6.64 to 8.43 over the same period.
- This improvement signifies that the company is collecting payments from its customers at a faster rate, which may lead to improved cash flows and reduced credit risk.
3. Payables turnover:
- The payables turnover ratio reflects how quickly the company is paying its suppliers. Badger Meter Inc. has demonstrated fluctuating payables turnover rates ranging from 4.53 to 5.97 during the specified quarters.
- The varying payables turnover may suggest changes in the company's payment policies or relationships with suppliers.
4. Working capital turnover:
- The working capital turnover ratio indicates how effectively the company is utilizing its working capital to generate sales. Badger Meter Inc. has shown a slight decrease in working capital turnover rates from 2.27 to 2.70 over the past two years.
- The declining trend in working capital turnover may prompt the company to reassess its working capital management strategies to optimize its resources.
In conclusion, the activity ratios of Badger Meter Inc. suggest that the company has made efforts to improve its efficiency in managing inventory, collecting receivables, and paying suppliers. However, the declining trend in working capital turnover highlights a potential area for further optimization in operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.41 | 94.86 | 98.20 | 95.20 | 89.85 | 87.06 | 88.14 | 83.58 | 83.30 | 80.54 | 82.66 | 81.96 | 81.01 | 77.32 | 77.58 | 73.10 | 80.91 | 84.06 | 81.96 | 82.89 |
| Days of sales outstanding (DSO) | days | 43.16 | 48.44 | 48.54 | 51.86 | 49.46 | 55.00 | 52.73 | 54.88 | 47.59 | 55.87 | 50.02 | 51.74 | 52.91 | 50.06 | 47.43 | 50.45 | 52.78 | 53.21 | 52.03 | 57.38 |
| Number of days of payables | days | 50.26 | 54.56 | 55.02 | 57.23 | 53.56 | 50.16 | 48.72 | 42.54 | 35.00 | 37.20 | 37.56 | 38.93 | 34.68 | 37.95 | 35.79 | 35.28 | 31.12 | 32.07 | 29.07 | 26.74 |
Activity ratios help assess how efficiently a company manages its assets and operations. Looking at Badger Meter Inc.'s activity ratios for inventory turnover, accounts receivable turnover, and accounts payable turnover, we can gain insights into its operational efficiency.
1. Days of Inventory on Hand (DOH):
- The trend indicates an increase in the days of inventory on hand from Q1 to Q4 of 2023, which suggests that inventory turnover has slowed down.
- The gradual increase in DOH may indicate inventory management issues or potential overstocking, which can tie up working capital.
2. Days of Sales Outstanding (DSO):
- The DSO decreased from Q1 to Q4 of 2023, reflecting an improvement in accounts receivable turnover.
- A declining DSO is generally positive as it signifies that the company is collecting its receivables more efficiently.
3. Number of Days of Payables:
- The days of payables show fluctuation over the quarters, with an overall increasing trend from Q1 to Q4 of 2023.
- A longer period of payables may suggest that the company is taking more time to pay its suppliers, potentially indicating a strain on vendor relationships or cash flow management.
In summary, while Badger Meter Inc. has shown improvement in managing its accounts receivable, there are concerns related to inventory management and payment terms with suppliers. Further analysis and comparison with industry benchmarks would provide a more comprehensive evaluation of the company's operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.99 | 0.97 | 0.96 | 0.94 | 0.94 | 0.96 | 0.95 | 0.95 | 0.95 | 0.93 | 0.94 | 0.89 | 0.90 | 0.94 | 0.95 | 0.99 | 1.01 | 1.01 | 1.04 | 1.07 |
Badger Meter Inc.'s long-term activity ratios provide insight into how efficiently the company manages its fixed assets and total assets to generate revenue.
Fixed asset turnover has been consistently increasing over the quarters, indicating that the company is generating more revenue per dollar invested in fixed assets. This demonstrates improved efficiency in utilizing fixed assets to generate sales. The significant increase from 6.83 in Q1 2022 to 9.52 in Q4 2023 is particularly noteworthy, showcasing a substantial improvement in fixed asset utilization.
Total asset turnover has remained relatively stable around 0.95 to 0.98 over the quarters. This ratio indicates the company's ability to generate sales using all assets, including both fixed and current assets. Although the total asset turnover hasn't shown significant fluctuations, it remains in line with industry norms.
In summary, Badger Meter Inc. is efficiently utilizing its fixed assets to generate sales, as evidenced by the increasing trend in fixed asset turnover. The stability of the total asset turnover suggests effective overall asset management.