Badger Meter Inc (BMI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 92,598 | 66,496 | 60,884 | 49,343 | 47,177 |
| Total assets | US$ in thousands | 716,919 | 603,047 | 530,818 | 471,217 | 421,893 |
| ROA | 12.92% | 11.03% | 11.47% | 10.47% | 11.18% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $92,598K ÷ $716,919K
= 12.92%
Badger Meter Inc.'s return on assets (ROA) has shown a consistent improvement over the past five years. The company's ROA increased from 11.18% in 2019 to 12.92% in 2023. This indicates that the company has been effectively utilizing its assets to generate profits for shareholders.
The upward trend in ROA demonstrates management's ability to enhance operational efficiency and profitability. A higher ROA indicates that the company is generating more income relative to its total assets, which is a positive sign for investors.
The company's ROA of 12.92% in 2023 is particularly strong, suggesting that Badger Meter Inc. has been successful in optimizing its asset utilization to drive profitability. This may be attributed to effective cost management, strong revenue growth, and strategic investments in productive assets.
Overall, Badger Meter Inc.'s improving ROA performance reflects positively on the company's ability to generate returns for its investors through efficient asset management and operational excellence.
Peer comparison
Dec 31, 2023