Badger Meter Inc (BMI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 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 | 331,068 | 323,639 | 316,452 | 308,613 |
| Debt-to-capital 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-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $516,482K)
= 0.00
Based on the data provided for Badger Meter Inc., the debt-to-capital ratio has consistently been reported as 0.00 across all quarters from Q1 2022 to Q4 2023. A debt-to-capital ratio of 0.00 indicates that the company has no debt in its capital structure in relation to its total capital. This suggests that Badger Meter Inc. has been operating with a debt-free capital structure during this period.
A debt-to-capital ratio of 0.00 is generally seen as a very conservative financial position, as it implies that the company relies solely on equity financing rather than debt to fund its operations and investments. While having no debt can be advantageous in terms of financial flexibility and lower interest expenses, it may also indicate a missed opportunity to leverage cheap debt financing for potential growth or tax benefits.
Overall, the consistent 0.00 debt-to-capital ratio for Badger Meter Inc. reflects a deliberate strategic choice to maintain a debt-free capital structure, potentially driven by risk aversion or a strong cash position. It would be beneficial for stakeholders to further evaluate the company's capital allocation strategy and consider the trade-offs between debt and equity financing for long-term sustainability and growth.
Peer comparison
Dec 31, 2023