Badger Meter Inc (BMI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.39 | 1.36 | 1.32 | 1.30 | 1.27 |
Badger Meter Inc. has shown consistently strong solvency ratios over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at or close to 0.00, indicating that the company has very little debt relative to its assets, capital, and equity. This suggests a low financial risk and a strong financial position.
The financial leverage ratio has increased gradually from 1.27 in 2019 to 1.39 in 2023. While still relatively low, this increase indicates that the company has slightly higher financial leverage in recent years. Despite this uptick, the financial leverage ratio remains at a manageable level and does not pose a significant solvency risk for Badger Meter Inc.
Overall, based on the solvency ratios, Badger Meter Inc. appears to be in a solid financial position with minimal debt levels and a manageable level of financial leverage.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 158.14 | — | 2,171.87 | 245.64 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
In this case, the lack of data for interest coverage for the years 2021, 2022, and 2023 limits the direct comparison of how Badger Meter Inc. has been performing in recent years. However, the available data for 2020 and 2019 is insightful.
In 2020, Badger Meter Inc. had a significantly high interest coverage ratio of 2,171.87, indicating a strong ability to cover its interest expenses. This drastic increase from the previous year suggests improved profitability and operational efficiency.
Similarly, in 2019, the interest coverage ratio was 245.64, which also demonstrates a healthy ability to cover interest costs. The substantial improvement from 2018 suggests that Badger Meter Inc. has been effectively managing its debt and generating sufficient earnings to cover its interest payments.
Overall, the historical trend of increasing interest coverage ratios for Badger Meter Inc. in the available years indicates a positive financial position and efficient financial management, enhancing the company's ability to service its debt obligations.