Badger Meter Inc (BMI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 191,782 | 162,910 | 141,805 | 128,361 | 138,052 | 114,787 | 100,210 | 89,219 | 87,174 | 67,038 | 57,359 | 51,402 | 72,273 | 93,901 | 85,201 | 70,376 | 48,871 | 37,728 | 23,894 | 15,033 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 131,948 | 128,782 | 118,914 | 115,786 | 110,312 | 101,785 | 97,335 | 88,509 | 82,146 | 79,835 | 72,309 | 71,766 | 68,036 | 60,192 | 62,701 | 60,456 | 57,247 | 58,845 | 54,307 | 57,924 |
| Cash ratio | 1.45 | 1.27 | 1.19 | 1.11 | 1.25 | 1.13 | 1.03 | 1.01 | 1.06 | 0.84 | 0.79 | 0.72 | 1.06 | 1.56 | 1.36 | 1.16 | 0.85 | 0.64 | 0.44 | 0.26 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Analyzing Badger Meter Inc.'s cash ratio over the past eight quarters, we observe an increasing trend from Q1 2022 to Q4 2023. This indicates an improvement in the company's ability to cover its short-term obligations with its available cash and cash equivalents.
The progressive increase in the cash ratio signals that Badger Meter Inc. has been managing its liquidity more effectively over the quarters. The company seems to have a solid foundation of cash reserves relative to its short-term liabilities. This trend suggests that Badger Meter Inc. may be better positioned to handle any unexpected expenses or economic downturns in the future.
Overall, the consistent improvement in Badger Meter Inc.'s cash ratio reflects positively on the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023