Badger Meter Inc (BMI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.35 | 3.28 | 3.27 | 3.12 | 3.15 | 3.20 | 3.12 | 3.18 | 3.18 | 3.08 | 3.03 | 2.84 | 3.29 | 3.87 | 3.56 | 3.50 | 3.50 | 3.26 | 3.23 | 2.96 |
| Quick ratio | 2.09 | 1.96 | 1.90 | 1.84 | 1.95 | 1.95 | 1.82 | 1.89 | 1.86 | 1.76 | 1.68 | 1.58 | 1.97 | 2.52 | 2.22 | 2.14 | 1.93 | 1.68 | 1.55 | 1.44 |
| 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 |
Badger Meter Inc.'s liquidity ratios show consistently strong performance over the past eight quarters. The current ratio has been above 3.0 in each period, indicating the company's ability to cover its short-term obligations with current assets. This suggests a healthy liquidity position and suggests the ability to meet its current liabilities comfortably.
The quick ratio, which excludes inventory from current assets, also demonstrates a solid liquidity position, consistently above 2.0. This indicates that Badger Meter has a strong ability to meet its short-term obligations using its most liquid assets.
Additionally, the cash ratio has remained well above 1.0 in all periods, indicating that Badger Meter has a sufficient level of cash and cash equivalents to cover its current liabilities. This suggests that the company is in a strong financial position and is able to meet its obligations without relying on the sale of inventory.
Overall, the liquidity ratios of Badger Meter Inc. demonstrate a consistently strong liquidity position, with ample coverage of short-term obligations from current assets and liquid reserves.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Badger Meter Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 104.73 days, a slight improvement compared to the previous quarter. Despite this improvement, the cycle has remained relatively stable around the 100 to 110 days range for the past two years.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company is taking longer to convert its investments into cash, which can tie up capital and lead to liquidity challenges.
Badger Meter Inc. appears to have a consistent but slightly lengthy cash conversion cycle, which could signal inefficiencies in managing inventory and collecting receivables. The company may need to focus on streamlining its operations to improve the efficiency of its working capital management.
Overall, while the fluctuations in the cash conversion cycle have been relatively small, it is essential for Badger Meter Inc. to monitor and potentially optimize this metric to enhance its cash flow and operational effectiveness.