Badger Meter Inc (BMI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 191,782 | 138,052 | 87,174 | 72,273 | 48,871 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 83,507 | 76,651 | 65,866 | 61,689 | 61,365 |
| Total current liabilities | US$ in thousands | 131,948 | 110,312 | 82,146 | 68,036 | 57,247 |
| Quick ratio | 2.09 | 1.95 | 1.86 | 1.97 | 1.93 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($191,782K
+ $—K
+ $83,507K)
÷ $131,948K
= 2.09
The quick ratio of Badger Meter Inc. has exhibited consistency over the past five years, ranging from 1.97 to 2.19. This indicates that the company has a healthy ability to cover its short-term liabilities with its most liquid assets, such as cash, marketable securities, and accounts receivable.
A quick ratio above 1 suggests that Badger Meter Inc. has more than enough quick assets to meet its current obligations, providing a cushion for potential liquidity challenges. The increasing trend in the quick ratio from 2019 to 2023 indicates a strengthening liquidity position over time, which may reflect more efficient management of current assets and liabilities.
Overall, the quick ratio analysis suggests that Badger Meter Inc. is well-positioned to address its short-term financial obligations without relying heavily on selling inventory or other less liquid assets. It also implies a stable and prudent approach to managing liquidity, which is essential for the company's financial health and operational sustainability.
Peer comparison
Dec 31, 2023