Badger Meter Inc (BMI)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 118,049 | 108,444 | 100,893 | 93,479 | 87,295 | 87,682 | 83,251 | 79,838 | 78,723 | 72,824 | 72,898 | 66,887 | 65,155 | 64,536 | 61,467 | 63,836 | 62,148 | 60,615 | 59,904 | 61,222 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 516,482 | 492,706 | 475,592 | 458,037 | 442,422 | 422,859 | 416,183 | 409,881 | 403,070 | 391,824 | 381,847 | 369,849 | 361,259 | 351,543 | 341,143 | 335,721 | 331,068 | 323,639 | 316,452 | 308,613 |
| Return on total capital | 22.86% | 22.01% | 21.21% | 20.41% | 19.73% | 20.74% | 20.00% | 19.48% | 19.53% | 18.59% | 19.09% | 18.08% | 18.04% | 18.36% | 18.02% | 19.01% | 18.77% | 18.73% | 18.93% | 19.84% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $118,049K ÷ ($—K + $516,482K)
= 22.86%
The return on total capital for Badger Meter Inc. has shown consistent improvement over the past eight quarters, indicating that the company is effectively utilizing its capital to generate profits. The ratio has steadily increased from 19.48% in Q1 2022 to 22.86% in Q4 2023, reflecting a positive trend of capital efficiency.
This suggests that Badger Meter Inc. is generating a higher return relative to the total capital invested in its operations. The company's ability to maintain and improve its return on total capital signifies efficient financial management and a potentially healthy financial position. Investors and stakeholders may view this trend positively as it reflects the company's ability to generate value from the funds invested in its operations.
Peer comparison
Dec 31, 2023