Badger Meter Inc (BMI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 118,676 | 150,722 | 141,502 | 129,471 | 117,919 | 108,314 | 100,763 | 93,349 | 87,165 | 87,555 | 83,126 | 79,717 | 78,603 | 72,698 | 72,781 | 66,755 | 65,010 | 64,262 | 61,173 | 63,551 |
| Interest expense (ttm) | US$ in thousands | 0 | 205 | 205 | 1,032 | 1,654 | 1,915 | 2,023 | 1,205 | 596 | 179 | 85 | 83 | 77 | 40 | 72 | 97 | 121 | 136 | 156 | 209 |
| Interest coverage | — | 735.23 | 690.25 | 125.46 | 71.29 | 56.56 | 49.81 | 77.47 | 146.25 | 489.13 | 977.95 | 960.45 | 1,020.82 | 1,817.45 | 1,010.85 | 688.20 | 537.27 | 472.51 | 392.13 | 304.07 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $118,676K ÷ $0K
= —
Badger Meter Inc's interest coverage ratio has shown fluctuations over the period of evaluation. The interest coverage ratio measures the company's ability to repay its interest obligations with its operating income.
The ratio started at a high level of 304.07 as of March 31, 2020, indicating that the company had a comfortable buffer to cover its interest expenses. This ratio increased steadily over the next few quarters, reaching peaks of 1,817.45 as of September 30, 2021, and 1,020.82 as of December 31, 2021. These high levels suggest the company had significantly improved its ability to cover interest payments.
However, the interest coverage ratio began to decline after reaching its peak in September 2021. It dropped to 77.47 as of March 31, 2023, and continued to decrease to 49.81 as of June 30, 2023. This significant decrease may indicate that the company's ability to cover interest expenses has weakened, potentially signaling financial difficulties.
The ratio experienced a slight improvement in the following periods, reaching 735.23 as of September 30, 2024. Notably, the data point for December 31, 2024, is missing, so it is unclear how the ratio evolved at that point.
Overall, the trend in Badger Meter Inc's interest coverage ratio shows both positive and negative fluctuations, indicating changes in the company's financial health and ability to meet its interest obligations. It would be important to continue monitoring this ratio to assess the company's financial stability and management of debt.
Peer comparison
Dec 31, 2024