Badger Meter Inc (BMI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 516,482 | 442,422 | 403,070 | 361,259 | 331,068 |
| ROE | 17.93% | 15.03% | 15.11% | 13.66% | 14.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $92,598K ÷ $516,482K
= 17.93%
Badger Meter Inc.'s return on equity (ROE) has shown a positive trend over the past five years, indicating an improving financial performance. The ROE has increased from 14.25% in 2019 to 17.93% in 2023. This indicates that the company is generating more profit with each dollar of shareholders' equity invested.
The steady increase in ROE suggests that Badger Meter Inc. is effectively utilizing its shareholders' equity to generate profits. This could be a result of efficient cost management, effective resource allocation, or successful revenue growth strategies.
Overall, the consistent improvement in ROE reflects positively on Badger Meter Inc.'s financial health and indicates that the company is creating value for its shareholders over the years. Investors and stakeholders may view this trend as a sign of financial strength and long-term sustainability for the company.
Peer comparison
Dec 31, 2023