Franklin Electric Co Inc (FELE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,041,220 | 2,024,940 | 1,654,440 | 1,241,280 | 1,304,690 |
| Property, plant and equipment | US$ in thousands | 229,739 | 215,154 | 210,654 | 209,021 | 201,328 |
| Fixed asset turnover | 8.88 | 9.41 | 7.85 | 5.94 | 6.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,041,220K ÷ $229,739K
= 8.88
Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better efficiency in utilizing fixed assets to generate sales.
In the case of Franklin Electric Co., Inc., the fixed asset turnover ratios over the past five years have varied. In 2023, the fixed asset turnover ratio was 8.99, indicating that the company generated $8.99 in sales revenue for every dollar of fixed assets invested. This represented a decrease from the previous year's ratio of 9.50, suggesting a slight decline in the efficiency of utilizing fixed assets to generate sales.
Looking further back, in 2021 and 2020, the company had fixed asset turnover ratios of 7.89 and 5.97, respectively. These ratios indicate fluctuations in the efficiency of utilizing fixed assets for sales generation. In 2019, the fixed asset turnover ratio was 6.53, showing a similar trend of variability over the years.
Overall, Franklin Electric Co., Inc. has demonstrated varying levels of efficiency in utilizing its fixed assets to generate sales revenue over the past five years. It is important for the company to consistently monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize profitability.
Peer comparison
Dec 31, 2023