Badger Meter Inc (BMI)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 516,482 | 442,422 | 403,070 | 361,259 | 331,068 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $516,482K)
= 0.00
The debt-to-capital ratio for Badger Meter Inc. has been consistently low over the past five years, fluctuating around 0.00 to 0.01. This indicates that the company has been primarily funding its operations and growth through equity rather than debt. A low debt-to-capital ratio suggests that the company has a conservative capital structure and may have lower financial risk compared to companies with higher debt levels. However, it is important to note that while minimal debt can be beneficial in reducing financial risk, it could also limit the company's ability to take advantage of debt financing for potential growth opportunities or leverage for strategic investments. It would be prudent for stakeholders to continue monitoring the company's debt-to-capital ratio in the context of its overall financial strategy and performance.
Peer comparison
Dec 31, 2023