Badger Meter Inc (BMI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 118,676 | 150,722 | 141,502 | 129,471 | 117,919 | 108,314 | 100,763 | 93,349 | 87,165 | 87,555 | 83,126 | 79,717 | 78,603 | 72,698 | 72,781 | 66,755 | 65,010 | 64,262 | 61,173 | 63,551 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 816,413 | 591,185 | 563,138 | 535,567 | 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 |
| Return on total capital | 14.54% | 25.49% | 25.13% | 24.17% | 22.83% | 21.98% | 21.19% | 20.38% | 19.70% | 20.71% | 19.97% | 19.45% | 19.50% | 18.55% | 19.06% | 18.05% | 18.00% | 18.28% | 17.93% | 18.93% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $118,676K ÷ ($—K + $816,413K)
= 14.54%
Badger Meter Inc's return on total capital has shown a fluctuating trend over the periods provided. From March 31, 2020, to June 30, 2022, the company's return on total capital ranged between 17.93% and 19.97%, indicating a relatively stable performance during this timeframe. However, in the subsequent quarters, the return on total capital increased significantly, reaching a peak of 25.49% on September 30, 2024. This demonstrates an improvement in the company's capital utilization efficiency and profitability metrics.
Notably, there was a sharp decline in the return on total capital in the last quarter of 2024, dropping to 14.54%. The significant decrease in this period may warrant further investigation to understand the factors contributing to this decline and assess the sustainability of the company's future performance.
Overall, the general upward trend in the return on total capital from 2020 to 2024, with some fluctuations in between, suggests that Badger Meter Inc has been effectively utilizing its total capital to generate returns for its investors.
Peer comparison
Dec 31, 2024