Badger Meter Inc (BMI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 716,919 | 603,047 | 530,818 | 471,217 | 421,893 |
| Operating ROA | 16.47% | 14.48% | 14.83% | 13.83% | 14.73% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $118,049K ÷ $716,919K
= 16.47%
Badger Meter Inc.'s operating return on assets (operating ROA) has shown a generally positive trend over the past five years. The company's ability to generate operating profits from its assets has improved from 14.73% in 2019 to 16.47% in 2023. This indicates that management has been effective in utilizing the company's assets to generate operating income.
The operating ROA peaked in 2023 at 16.47%, representing the highest return on assets achieved during the period under review. This suggests that the company has become more efficient in generating operating profits relative to its asset base.
Overall, the increasing trend in operating ROA indicates that Badger Meter Inc. has been successful in managing its operations to generate higher returns from its assets over the past five years. This trend is a positive indicator of the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023