Badger Meter Inc (BMI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 124,942 | 92,598 | 66,496 | 60,884 | 49,343 |
| Total assets | US$ in thousands | 816,413 | 716,919 | 603,047 | 530,818 | 468,380 |
| ROA | 15.30% | 12.92% | 11.03% | 11.47% | 10.53% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $124,942K ÷ $816,413K
= 15.30%
Based on the data provided, Badger Meter Inc's return on assets (ROA) has shown a consistent improvement over the past five years. The ROA increased from 10.53% as of December 31, 2020, to 15.30% as of December 31, 2024. This indicates that the company has been effectively generating more profit relative to its total assets over this period.
The steady upward trend in ROA suggests that Badger Meter Inc has been efficiently utilizing its assets to generate profits for its stakeholders. A rising ROA is generally a positive indicator of management's effectiveness in using the company's resources to generate earnings.
Overall, the increasing trend in ROA reflects positively on Badger Meter Inc's operational performance and implies that the company has been successful in improving its profitability in relation to its asset base over the past five years.
Peer comparison
Dec 31, 2024