Badger Meter Inc (BMI)

Badger Meter Inc.'s receivables turnover has shown a generally increasing trend over the past five years, indicating an improvement in the company's ability to efficiently collect payments from its customers. The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a period, and a higher turnover ratio suggests that the company is more effective in converting its credit sales into cash.

In 2023, the receivables turnover ratio reached 8.43, significantly higher than the previous year's ratio of 7.38. This increase suggests that Badger Meter Inc. collected its accounts receivable balance approximately 8.43 times during the year, compared to 7.38 times in 2022. The improvement in receivables turnover could be attributed to the company's efficient credit management policies, effective collection procedures, and possibly a better quality customer base that pays promptly.

Comparing the latest ratio to the ratios from 2021, 2020, and 2019, the company has shown consistent growth in its receivables turnover over the last three years. This trend indicates that Badger Meter Inc. has been more successful in managing its accounts receivable and collecting payments in a timely manner, which is a positive sign of its financial health and operational efficiency.

Overall, the increasing trend in Badger Meter Inc.'s receivables turnover reflects the company's effectiveness in managing its credit sales and collecting receivables, which is essential for maintaining healthy cash flow and liquidity.

Peer comparison

Dec 31, 2023