Badger Meter Inc (BMI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.35 | 1.39 | 1.36 | 1.32 | 1.30 |
Badger Meter Inc has consistently maintained a strong solvency position over the years, as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all of which have been reported as 0.00 for every year from 2020 to 2024. This suggests that the company has minimal debt in relation to its assets, capital, and equity, signifying a low level of financial risk.
Additionally, the financial leverage ratio has been gradually increasing from 1.30 in 2020 to 1.35 in 2024. This ratio measures the extent to which the company relies on debt financing versus equity financing. Even though the financial leverage ratio has been rising slightly, it remains relatively low, indicating that the company's financial structure is still conservative and not overly reliant on debt to finance its operations.
Overall, the solvency ratios highlight Badger Meter Inc's prudent financial management and solid financial footing, with a conservative debt structure that provides stability and security for its stakeholders.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 157.91 | 3,930.15 | 2,167.03 |
Badger Meter Inc's interest coverage ratio, which measures the company's ability to pay interest on its outstanding debt, has shown fluctuations over the years based on the data provided. As of December 31, 2020, the interest coverage ratio stood at a strong 2,167.03, indicating a very healthy ability to cover interest obligations. This ratio improved further by December 31, 2021, reaching a high level of 3,930.15, demonstrating an even stronger capacity to meet interest payments.
However, the interest coverage ratio drastically declined by December 31, 2022, dropping to 157.91. This substantial decrease may raise concerns about the company's ability to service its debt obligations from its operating income. The absence of values for December 31, 2023, and December 31, 2024, could suggest potential difficulties that may have prevented the calculation of these ratios, raising further questions about the company's financial health and stability.
Overall, while the significant fluctuation in Badger Meter Inc's interest coverage ratio over the years can signify varying levels of financial health and risk, closer examination and additional financial information may be needed to fully understand the implications for the company's debt management and overall financial performance.