Badger Meter Inc (BMI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| Financial leverage ratio | 1.00 | 1.36 | 1.39 | 1.39 | 1.39 | 1.40 | 1.39 | 1.38 | 1.36 | 1.36 | 1.35 | 1.33 | 1.32 | 1.31 | 1.31 | 1.31 | 1.30 | 1.28 | 1.29 | 1.28 |
Badger Meter Inc has consistently shown a strong solvency position based on its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00 for the past several periods, indicating that the company has no debt or very minimal debt in relation to its assets, capital, and equity. This suggests that the company is not relying heavily on debt to finance its operations, which can be seen as a positive sign of financial health.
Additionally, the financial leverage ratio, which indicates the proportion of the company's assets that are financed by debt, has been relatively stable over the years, starting at 1.28 in March 2020 and increasing slightly to 1.39 by June 2024. While this increase may show a slight uptick in leverage, the ratio remains relatively low and indicates a conservative approach to debt financing.
Overall, based on the solvency ratios provided, Badger Meter Inc appears to have a strong financial position with low levels of debt and a conservative leverage strategy, which bodes well for its long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Badger Meter Inc's interest coverage ratio has shown fluctuations over the years based on the provided data. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to September 30, 2021, the interest coverage ratio for Badger Meter Inc has been consistently high, ranging from 304.07 to 1,817.45. This indicates that the company's operating income was significantly higher compared to its interest expenses during this period, suggesting a strong ability to meet its interest obligations.
However, from December 31, 2021, to June 30, 2022, there was a notable decline in the interest coverage ratio, dropping to as low as 146.25. This decline may raise concerns about the company's ability to cover its interest expenses with its operating income during this period.
Subsequently, the interest coverage ratio improved in the following quarters, reaching 735.23 by December 31, 2024. It is important for stakeholders to monitor this ratio to ensure that Badger Meter Inc can continue to comfortably meet its interest obligations in the future.