Badger Meter Inc (BMI)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 707,639 | 566,120 | 505,218 | 425,514 | 424,372 |
| Total assets | US$ in thousands | 716,919 | 603,047 | 530,818 | 471,217 | 421,893 |
| Total asset turnover | 0.99 | 0.94 | 0.95 | 0.90 | 1.01 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $707,639K ÷ $716,919K
= 0.99
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. In the case of Badger Meter Inc., the total asset turnover has been relatively stable over the past five years, ranging from 0.91 in 2020 to 1.01 in 2019.
The ratio indicates that, on average, for every dollar of total assets held by the company, it generated revenue of around 0.98 in 2023, 0.94 in 2022, and 0.95 in 2021. A total asset turnover of less than 1 suggests that the company may not be effectively utilizing its assets to generate sales. However, the consistency of the ratio over the years indicates that Badger Meter Inc. has maintained a relatively stable level of efficiency in generating revenue from its assets.
It is important for the company to monitor its total asset turnover to ensure that it is effectively utilizing its assets to drive revenue growth and improve overall performance. Additionally, comparative analysis with industry peers can provide insights into how Badger Meter Inc. is performing relative to its competitors in terms of asset utilization efficiency.
Peer comparison
Dec 31, 2023