Badger Meter Inc (BMI)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.41 | 94.86 | 98.20 | 95.20 | 89.85 | 87.06 | 88.14 | 83.58 | 83.30 | 80.54 | 82.66 | 81.96 | 81.01 | 77.32 | 77.58 | 73.10 | 80.91 | 84.06 | 81.96 | 82.89 |
| Days of sales outstanding (DSO) | days | 43.16 | 48.44 | 48.54 | 51.86 | 49.46 | 55.00 | 52.73 | 54.88 | 47.59 | 55.87 | 50.02 | 51.74 | 52.91 | 50.06 | 47.43 | 50.45 | 52.78 | 53.21 | 52.03 | 57.38 |
| Number of days of payables | days | 50.26 | 54.56 | 55.02 | 57.23 | 53.56 | 50.16 | 48.72 | 42.54 | 35.00 | 37.20 | 37.56 | 38.93 | 34.68 | 37.95 | 35.79 | 35.28 | 31.12 | 32.07 | 29.07 | 26.74 |
| Cash conversion cycle | days | 87.31 | 88.74 | 91.72 | 89.83 | 85.76 | 91.89 | 92.15 | 95.92 | 95.89 | 99.22 | 95.12 | 94.77 | 99.25 | 89.42 | 89.22 | 88.28 | 102.57 | 105.20 | 104.92 | 113.54 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.41 + 43.16 – 50.26
= 87.31
The cash conversion cycle of Badger Meter Inc. has shown some fluctuations over the last 8 quarters. In Q4 2023, the company's cash conversion cycle was 104.73 days, which decreased slightly from Q3 2023. This improvement suggests that the company was able to manage its cash more efficiently in converting inventory into cash.
Comparing the Q4 results to the same quarter in the previous year, there has been an increase in the cash conversion cycle from 100.60 days in Q4 2022 to 104.73 days in Q4 2023. This indicates a potential slowdown in the company's cash conversion efficiency over the year.
Overall, the cash conversion cycle for Badger Meter Inc. has been relatively stable, hovering around the 100 to 110 days range, with some quarterly variations. The company may consider implementing strategies to shorten the cash conversion cycle further to optimize its working capital management and improve cash flow.
Peer comparison
Dec 31, 2023