Badger Meter Inc (BMI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 442,177 | 347,832 | 261,360 | 223,688 | 200,094 |
| Total current liabilities | US$ in thousands | 131,948 | 110,312 | 82,146 | 68,036 | 57,247 |
| Current ratio | 3.35 | 3.15 | 3.18 | 3.29 | 3.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $442,177K ÷ $131,948K
= 3.35
The current ratio of Badger Meter Inc. has shown a fluctuating trend over the past five years. The ratio was relatively high at 3.50 in 2019, indicating that the company had more than enough current assets to cover its current liabilities. However, there was a slight decrease in the current ratio to 3.39 in 2020, which could be a sign of a potential strain on the company's liquidity.
Subsequently, the current ratio decreased further to 3.18 in 2021 before slightly increasing to 3.15 in 2022. This suggests a possible improvement in the company's ability to meet its short-term obligations. However, in 2023, the current ratio significantly improved to 3.35, indicating a strong liquidity position and an increase in short-term asset coverage for current liabilities.
Overall, while the current ratio has shown some fluctuations, the trend indicates that Badger Meter Inc. has generally maintained a solid liquidity position over the past five years, with current assets consistently exceeding current liabilities by a comfortable margin.
Peer comparison
Dec 31, 2023