Badger Meter Inc (BMI)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total assets | US$ in thousands | 716,919 | 689,757 | 659,252 | 633,403 | 603,047 | 574,373 | 560,031 | 545,938 | 530,818 | 519,027 | 499,016 | 486,295 | 471,217 | 448,636 | 439,533 | 430,956 | 421,893 | 417,490 | 404,861 | 403,249 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $716,919K
= 0.00
Based on the data provided for Badger Meter Inc.'s debt-to-assets ratio for the past eight quarters, the ratio has consistently been reported as 0.00. This indicates that the company has not been utilizing debt to finance its assets during the analyzed period. A debt-to-assets ratio of zero signifies that the company's total assets are fully financed by equity rather than debt.
While a debt-to-assets ratio of 0.00 may suggest a strong financial position and low financial risk in terms of debt obligations, it is also essential to consider the potential implications of such a conservative approach. By not utilizing debt, the company may be missing out on potential tax benefits associated with interest payments and the leverage opportunities that debt financing can offer to enhance returns for shareholders.
Overall, the consistently low debt-to-assets ratio for Badger Meter Inc. reflects a conservative capital structure strategy that prioritizes equity financing. The company's ability to maintain a debt-free balance sheet implies a lower risk of financial distress due to debt repayment obligations, but it may also limit potential growth opportunities that could be leveraged through prudent use of debt.
Peer comparison
Dec 31, 2023