Badger Meter Inc (BMI)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 118,049 | 87,295 | 78,723 | 65,156 | 62,148 |
| Revenue | US$ in thousands | 707,639 | 566,120 | 505,218 | 425,514 | 424,372 |
| Operating profit margin | 16.68% | 15.42% | 15.58% | 15.31% | 14.64% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $118,049K ÷ $707,639K
= 16.68%
Badger Meter Inc.'s operating profit margin has shown a generally positive trend over the past five years. The company's operating profit margin increased from 14.64% in 2019 to 16.78% in 2023, indicating improved operational efficiency and profitability during this period. The consistent year-over-year growth in the operating profit margin suggests that Badger Meter Inc. has effectively managed its operating expenses and generated higher operating income relative to its revenue.
The steady improvement in the operating profit margin highlights the company's ability to control costs and increase profitability, which can be attributed to factors such as effective cost management, operational efficiency, and potentially pricing strategies. The rising trend in the operating profit margin is a positive indicator of the company's financial health and sustainable profitability.
However, it is also important to monitor the operating profit margin closely in future periods to ensure continued growth and sustainability in profitability. Factors such as changing market conditions, competition, and economic fluctuations can impact the operating profit margin, so ongoing analysis and strategic decision-making will be essential to maintaining and potentially further improving Badger Meter Inc.'s operating performance.
Peer comparison
Dec 31, 2023