Badger Meter Inc (BMI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 606,232 | 516,482 | 442,422 | 403,070 | 361,259 |
| ROE | 20.61% | 17.93% | 15.03% | 15.11% | 13.66% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $124,942K ÷ $606,232K
= 20.61%
Badger Meter Inc's return on equity (ROE) has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ROE increased from 13.66% in 2020 to 20.61% in 2024, indicating a steady improvement in the company's ability to generate profit from shareholders' equity.
This upward trend in ROE suggests that Badger Meter Inc has been effectively utilizing its equity capital to generate higher returns for its shareholders. The company's management may have been implementing strategies to improve operational efficiency and profitability, leading to the consistent growth in ROE over the years.
A higher ROE indicates that the company is generating more profits relative to its shareholders' investments, which is a positive sign for investors. It also reflects positively on the company's financial health and management's effectiveness in deploying capital.
Overall, the increasing trend in Badger Meter Inc's ROE from 2019 to 2023 signals a strong performance in terms of profitability and efficiency in utilizing shareholders' equity, potentially making the company an attractive investment opportunity.
Peer comparison
Dec 31, 2024