Badger Meter Inc (BMI)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 826,558 | 803,816 | 781,571 | 740,771 | 703,592 | 668,476 | 630,292 | 592,267 | 565,568 | 553,992 | 534,721 | 519,757 | 505,197 | 481,778 | 466,627 | 434,877 | 425,543 | 420,770 | 415,829 | 428,252 |
| Total current assets | US$ in thousands | 540,116 | 529,296 | 509,217 | 470,598 | 442,177 | 422,952 | 388,587 | 360,843 | 347,832 | 325,628 | 303,921 | 281,277 | 261,360 | 241,712 | 219,313 | 204,112 | 220,851 | 232,750 | 223,407 | 211,429 |
| Total current liabilities | US$ in thousands | 118,205 | 129,163 | 138,119 | 135,094 | 131,948 | 128,782 | 118,914 | 115,786 | 110,312 | 101,785 | 97,335 | 88,509 | 82,146 | 75,855 | 72,309 | 71,766 | 65,199 | 60,192 | 62,701 | 60,456 |
| Working capital turnover | 1.96 | 2.01 | 2.11 | 2.21 | 2.27 | 2.27 | 2.34 | 2.42 | 2.38 | 2.47 | 2.59 | 2.70 | 2.82 | 2.90 | 3.17 | 3.29 | 2.73 | 2.44 | 2.59 | 2.84 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $826,558K ÷ ($540,116K – $118,205K)
= 1.96
The working capital turnover ratio for Badger Meter Inc has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue.
Initially, in March 2020, the working capital turnover stood at 2.84, indicating that the company generated $2.84 in sales for every dollar of working capital invested. Subsequently, the ratio decreased to 2.59 by June 2020 and continued to decline to 2.44 by September 2020, suggesting a potential inefficiency in working capital management.
However, there was a rebound in the ratio by December 2020, rising to 2.73, and a significant improvement was noted in March 2021, reaching 3.29, indicating a more efficient utilization of working capital. This positive trend continued in the following quarters, with the ratio staying above 3 for the next few periods.
From March 2022 onwards, there was a gradual decline in the working capital turnover ratio, with fluctuations observed quarter by quarter. By December 31, 2024, the ratio had decreased to 1.96, showing a substantial drop from the earlier peak levels.
Overall, the working capital turnover for Badger Meter Inc has shown variability over the period under review, with periods of both efficiency and inefficiency in utilizing working capital to generate sales revenue. Continuous monitoring and analysis of this ratio can help management in assessing and improving the company's working capital management practices.
Peer comparison
Dec 31, 2024