Franklin Electric Co Inc (FELE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.00 | 2.69 | 2.48 | 2.41 | 2.71 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.00 | 3.64 | 4.52 | 5.06 | 3.00 |
Franklin Electric Co Inc's activity ratios can provide insight into how efficiently the company is managing its resources.
1. Inventory Turnover: This ratio indicates how many times the company sells and replaces its inventory during a specific period. Franklin Electric Co Inc's inventory turnover has fluctuated over the years, ranging from 2.41 to 2.71. A higher inventory turnover generally indicates effective inventory management, although a sudden drop to 0.00 in the last year may raise concerns about stagnant or obsolete inventory.
2. Receivables Turnover: The absence of data for receivables turnover for all years indicates that there is no available information to assess how quickly the company is collecting on its credit sales. It would be beneficial to have this data to understand the efficiency of Franklin Electric Co Inc's accounts receivable management.
3. Payables Turnover: Similarly, the lack of information on payables turnover suggests that there is no insight into how quickly the company is paying its creditors. This ratio is important in assessing the company's payment practices and liquidity management.
4. Working Capital Turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. Franklin Electric Co Inc's working capital turnover has demonstrated some variability, with figures ranging from 3.00 to 5.06. A decrease in this ratio could indicate less effective utilization of working capital in generating revenue.
In conclusion, while some activity ratios provide a view of Franklin Electric Co Inc's operational efficiency, the absence of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's working capital management and relationships with customers and suppliers. Further analysis and additional information on these ratios would offer a more complete picture of the company's financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 135,434.24 | 135.71 | 147.10 | 151.27 | 134.91 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of Franklin Electric Co Inc:
1. Days of Inventory on Hand (DOH):
- The number of days of inventory on hand has shown an increasing trend over the years, from 134.91 days as of December 31, 2020, to 147.10 days as of December 31, 2022. However, there was a significant spike to 135,434.24 days as of December 31, 2024, which seems unrealistic and may indicate a data error.
2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on the days of sales outstanding for Franklin Electric Co Inc for the years mentioned. This could imply that the company's accounts receivable turnover and efficiency in collecting sales revenue are not assessed in this context.
3. Number of Days of Payables:
- Similar to DSO, there is no information available on the number of days of payables for Franklin Electric Co Inc for the years provided. This prevents the analysis of how long the company takes to pay its suppliers.
Overall, based on the available data, the analysis is limited in assessing the company's efficiency in managing inventory, collecting receivables, and paying its payables. It would be beneficial to have complete information on all three activity ratios to provide a comprehensive evaluation of Franklin Electric Co Inc's operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 9.50 | 6.42 | 5.97 |
| Total asset turnover | 0.00 | 1.20 | 1.21 | 1.06 | 0.98 |
The Fixed Asset Turnover ratio measures how efficiently a company is generating sales revenue from its fixed assets. In the case of Franklin Electric Co Inc, the ratio has shown a positive trend over the years, increasing from 5.97 in 2020 to 6.42 in 2021, and further to 9.50 in 2022. This suggests that the company is utilizing its fixed assets more effectively to generate sales.
However, there is missing data for the Fixed Asset Turnover ratio for 2023 and 2024, which makes it difficult to assess the trend for those years. It would be beneficial to analyze the reasons behind the missing data to gain a better understanding of the company's long-term asset utilization strategy.
On the other hand, the Total Asset Turnover ratio reflects how efficiently a company is utilizing all its assets to generate sales. Franklin Electric Co Inc's Total Asset Turnover ratio has generally been increasing, from 0.98 in 2020 to 1.06 in 2021, and then to 1.21 in 2022. However, there was a slight decrease to 1.20 in 2023 and missing data for 2024.
This overall positive trend in the Total Asset Turnover ratio indicates that the company is becoming more effective in generating sales revenue relative to its total assets. However, the decrease in 2023 and missing data for 2024 call for further investigation to understand the factors contributing to these fluctuations.
In conclusion, while Franklin Electric Co Inc has shown improvements in both Fixed Asset Turnover and Total Asset Turnover ratios over the years, it is essential to delve deeper into the missing data to gain a comprehensive understanding of the company's long-term asset management efficiency.