Badger Meter Inc (BMI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 826,558 | 703,592 | 565,568 | 505,198 | 425,544 |
| Total assets | US$ in thousands | 816,413 | 716,919 | 603,047 | 530,818 | 468,380 |
| Total asset turnover | 1.01 | 0.98 | 0.94 | 0.95 | 0.91 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $826,558K ÷ $816,413K
= 1.01
The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. In the case of Badger Meter Inc, the trend of total asset turnover over the past five years shows improvement, increasing from 0.91 in December 2020 to 1.01 in December 2024. This indicates that the company has been able to generate more revenue from its assets over time.
A ratio below 1 suggests that the company is not generating enough sales relative to its total assets, indicating a lower level of efficiency in asset utilization. As Badger Meter Inc's total asset turnover ratio has been consistently below 1 in the given years, the company may have room for further optimization in this aspect of its operations.
Overall, the increasing trend in total asset turnover for Badger Meter Inc is a positive sign of improving efficiency in utilizing its assets to drive revenue growth. However, further analysis of the company's specific industry, business model, and competitive landscape would provide additional context for a comprehensive evaluation.
Peer comparison
Dec 31, 2024