Badger Meter Inc (BMI)
Working capital 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 current assets | US$ in thousands | 540,116 | 442,177 | 347,832 | 261,360 | 220,851 |
| Total current liabilities | US$ in thousands | 118,205 | 131,948 | 110,312 | 82,146 | 65,199 |
| Working capital turnover | 1.96 | 2.27 | 2.38 | 2.82 | 2.73 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $826,558K ÷ ($540,116K – $118,205K)
= 1.96
The working capital turnover for Badger Meter Inc has shown some fluctuations over the years. The ratio decreased from 2.73 in 2020 to 1.96 in 2024, indicating a decline in the company's efficiency in managing its working capital to generate sales. A lower working capital turnover suggests that the company is not effectively utilizing its current assets to support its revenue generation activities. This may raise concerns about the company's liquidity and operational efficiency. It would be essential for Badger Meter Inc to closely monitor and improve its working capital turnover to ensure optimal utilization of its resources.
Peer comparison
Dec 31, 2024