The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Badger Meter's quick ratio for the quarter that ended in Mar. 2024 was 2.30.
Badger Meter has a quick ratio of 2.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for Badger Meter's Quick Ratio or its related term are showing as below:
BMI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.65 Med: 1.62 Max: 2.59
Current: 2.3
During the past 13 years, Badger Meter's highest Quick Ratio was 2.59. The lowest was 0.65. And the median was 1.62.
BMI's Quick Ratio is ranked better than 71.26% of 2484
companies
in the Hardware industry
Industry Median: 1.475
vs BMI: 2.30
Badger Meter Quick Ratio Historical Data
The historical data trend for Badger Meter's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Badger Meter's Quick Ratio
For the Scientific & Technical Instruments subindustry, Badger Meter's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Badger Meter's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Badger Meter's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Badger Meter's Quick Ratio falls into.
Badger Meter Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Badger Meter's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Badger Meter (NYSE:BMI) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Badger Meter Quick Ratio Related Terms
Thank you for viewing the detailed overview of Badger Meter's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Badger Meter Inc is an innovator, manufacturer, and marketer of products incorporating flow measurement, quality, control, and other system solutions serving markets. The company's products measure water, oil, chemicals, and other fluids, and provide and communicate timely measurement data. Badger's product lines include two categories: sales of water meters, radios, software, and related technologies, and water quality monitoring solutions to water utilities (utility water) and sales of meters and other sensing instruments, valves, software, and other solutions for industrial applications in water, wastewater, and other industries (flow instrumentation). It derives a majority of its revenues from the United States.
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