Badger Meter Inc (BMI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 191,782 | 138,052 | 87,174 | 72,273 | 48,871 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 131,948 | 110,312 | 82,146 | 68,036 | 57,247 |
| Cash ratio | 1.45 | 1.25 | 1.06 | 1.06 | 0.85 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($191,782K
+ $—K)
÷ $131,948K
= 1.45
The cash ratio of Badger Meter Inc. has shown an increasing trend over the past five years, indicating a strengthening liquidity position. The ratio has consistently remained above 1, reflecting that the company has sufficient cash and cash equivalents to cover its current liabilities.
In particular, the cash ratio increased from 0.99 in 2019 to 1.55 in 2023, suggesting an improved ability to meet short-term obligations with readily available cash resources. This indicates that Badger Meter Inc. has been managing its cash effectively and has a solid liquidity position to handle unforeseen financial challenges.
Overall, the increasing trend in the cash ratio demonstrates the company's ability to maintain a healthy liquidity position over the years, which is essential for sustaining operations and managing financial stability.
Peer comparison
Dec 31, 2023