Badger Meter Inc (BMI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.24 | 119.07 | 123.96 | 130.15 | 131.31 | 132.69 | 137.75 | 134.11 | 126.58 | 123.36 | 125.84 | 120.17 | 121.31 | 116.75 | 119.17 | 118.01 | 115.74 | 110.00 | 110.49 | 103.75 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 105.24 | 119.07 | 123.96 | 130.15 | 131.31 | 132.69 | 137.75 | 134.11 | 126.58 | 123.36 | 125.84 | 120.17 | 121.31 | 116.75 | 119.17 | 118.01 | 115.74 | 110.00 | 110.49 | 103.75 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.24 + — – —
= 105.24
The cash conversion cycle of Badger Meter Inc has shown some fluctuations over the years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2020, the cash conversion cycle increased gradually from 103.75 days to 115.74 days, indicating a slowdown in the company's cash inflows relative to its outflows.
Subsequently, from March 31, 2021, to June 30, 2023, the cycle continued to rise, reaching its peak at 137.75 days on June 30, 2023. This suggests that Badger Meter Inc was taking longer to convert its investments into cash during this period.
However, from December 31, 2023, onwards, the cash conversion cycle started to decrease consistently until December 31, 2024, when it significantly dropped to 105.24 days. This improvement could indicate that the company was managing its working capital more efficiently, resulting in a quicker turnaround from investment to cash.
Overall, while there were fluctuations in the cash conversion cycle of Badger Meter Inc over the years, the trend towards a shorter cycle by the end of 2024 suggests potential improvements in the company's working capital management and cash flow efficiency. Adequate monitoring and optimization of the cash conversion cycle are crucial for ensuring the company's financial health and sustainability.
Peer comparison
Dec 31, 2024