Badger Meter Inc (BMI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.06% | 38.86% | 40.67% | 39.54% | 38.53% |
| Operating profit margin | 16.68% | 15.42% | 15.58% | 15.31% | 14.64% |
| Pretax margin | 17.24% | 15.49% | 15.56% | 15.27% | 14.52% |
| Net profit margin | 13.09% | 11.75% | 12.05% | 11.60% | 11.12% |
Badger Meter Inc. has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has been relatively stable, ranging from 38.51% in 2019 to 40.67% in 2021. This indicates the company's ability to effectively manage its production costs and generate profits from its core operations.
The operating profit margin has also shown a positive trend, with an increase from 14.64% in 2019 to 16.78% in 2023. This demonstrates the company's efficiency in controlling its operating expenses and operating income generation.
Moreover, the pretax margin has consistently improved over the years, reaching 17.33% in 2023. This indicates that the company has been successful in managing its taxes and generating profits before tax expenses.
Finally, the net profit margin has also depicted a positive trend, increasing from 11.11% in 2019 to 13.16% in 2023. This suggests that Badger Meter Inc. has effectively managed its interest expenses, taxes, and other costs to generate a higher proportion of net income compared to total revenue.
Overall, the profitability ratios of Badger Meter Inc. reflect a strong performance in terms of managing costs, generating operating income, and optimizing profits over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.47% | 14.48% | 14.83% | 13.83% | 14.73% |
| Return on assets (ROA) | 12.92% | 11.03% | 11.47% | 10.47% | 11.18% |
| Return on total capital | 22.86% | 19.73% | 19.53% | 18.04% | 18.77% |
| Return on equity (ROE) | 17.93% | 15.03% | 15.11% | 13.66% | 14.25% |
Badger Meter Inc.'s profitability ratios indicate a consistent and improving trend over the past five years. The Operating return on assets (Operating ROA) has steadily increased from 14.73% in 2019 to 16.47% in 2023, suggesting the company's ability to generate operating income from its assets has improved.
Similarly, the Return on assets (ROA) has shown steady growth from 11.18% in 2019 to 12.92% in 2023, indicating an increasing ability to generate profits from its total assets. This indicates the company's effectiveness in generating earnings relative to the total assets employed.
The Return on total capital has also displayed steady improvement over the same period, increasing from 18.52% in 2019 to 22.86% in 2023. This metric demonstrates the company's ability to generate returns for both equity and debt holders.
Moreover, the Return on equity (ROE) has shown a consistent increasing trend, rising from 14.25% in 2019 to 17.93% in 2023. This shows that Badger Meter Inc. has been efficient in generating profits from shareholder equity.
Overall, the profitability ratios of Badger Meter Inc. reflect a positive performance, with consistent growth and increasing profitability over the past five years, indicating effective management of assets and capital to generate returns for shareholders.