Badger Meter Inc (BMI)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 706,241 | 671,125 | 631,849 | 592,988 | 565,654 | 554,078 | 534,685 | 519,723 | 505,169 | 481,750 | 466,659 | 434,884 | 425,526 | 420,753 | 415,700 | 428,070 | 424,345 | 421,202 | 422,957 | 433,148 |
| Receivables | US$ in thousands | 83,507 | 89,063 | 84,020 | 84,246 | 76,651 | 83,491 | 77,247 | 78,147 | 65,866 | 73,747 | 63,951 | 61,642 | 61,689 | 57,706 | 54,021 | 59,164 | 61,365 | 61,406 | 60,294 | 68,095 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $706,241K ÷ $83,507K
= 8.46
The receivables turnover ratio for Badger Meter Inc. indicates how efficiently the company is able to collect cash from its customers. A higher turnover ratio suggests that the company is more efficient in collecting payments from credit sales, while a lower turnover ratio may indicate potential issues with collecting receivables promptly.
Analyzing the trend of receivables turnover for Badger Meter Inc. over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the receivables turnover ratio increased to 8.43 from 7.51 in Q3 2023, showing an improvement in the efficiency of collecting receivables compared to the previous quarter.
Looking at the longer-term trend, the receivables turnover ratio has generally been increasing since Q1 2022, indicating a positive trend in the company's ability to collect receivables efficiently over the past two years. This suggests that Badger Meter Inc. has been managing its accounts receivable effectively, translating credit sales into cash receipts at a quicker rate.
Overall, the increasing trend in receivables turnover for Badger Meter Inc. reflects positively on the company's credit management practices and indicates that the company is effectively converting its credit sales into cash, which is a positive indicator of financial health and operational efficiency.
Peer comparison
Dec 31, 2023