Badger Meter Inc (BMI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 117,919 | 87,165 | 78,603 | 65,011 |
| Interest expense | US$ in thousands | — | — | 552 | 20 | 30 |
| Interest coverage | — | — | 157.91 | 3,930.15 | 2,167.03 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
Badger Meter Inc's interest coverage ratio has shown varying trends over the years, indicating the company's ability to cover its interest expenses.
As of December 31, 2020, the interest coverage ratio was exceptionally strong at 2,167.03, reflecting a substantial buffer against interest payments. This suggests that the company's operating income is significantly higher than its interest expenses.
By December 31, 2021, the interest coverage ratio improved even further to 3,930.15, indicating an even healthier financial position with increased ability to meet interest obligations comfortably.
However, there was a significant decrease in the interest coverage ratio as of December 31, 2022, dropping to 157.91. This sharp decline may raise concerns about Badger Meter Inc's capacity to cover interest expenses from its operating income.
The absence of specific data for December 31, 2023, and December 31, 2024, could suggest that the company is facing challenges in providing a reliable measure of interest coverage for those periods.
In conclusion, while Badger Meter Inc has demonstrated strong interest coverage ratios in recent years, the significant decrease in 2022 and missing data for subsequent years may indicate potential financial volatility that warrants further investigation.
Peer comparison
Dec 31, 2024