Badger Meter Inc (BMI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 816,413 | 716,919 | 603,047 | 530,818 | 468,380 |
| Total stockholders’ equity | US$ in thousands | 606,232 | 516,482 | 442,422 | 403,070 | 361,259 |
| Financial leverage ratio | 1.35 | 1.39 | 1.36 | 1.32 | 1.30 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $816,413K ÷ $606,232K
= 1.35
The financial leverage ratio of Badger Meter Inc has shown a gradual increase over the last five years, starting at 1.30 in December 2020 and reaching 1.35 by December 2024. This indicates that the company's reliance on debt to finance its operations has slightly increased over this period. A higher financial leverage ratio suggests that a larger proportion of the company's assets are funded through debt, which can potentially enhance returns for shareholders but also comes with increased financial risk. Overall, the trend in Badger Meter Inc's financial leverage ratio implies a moderate level of leverage in its capital structure, which investors and stakeholders should continue to monitor closely.
Peer comparison
Dec 31, 2024