Franklin Electric Co Inc (FELE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,304,060 | 1,368,120 | 1,352,280 | 1,085,780 | 814,192 |
| Inventory | US$ in thousands | 483,875,000 | 508,696 | 544,980 | 449,975 | 300,932 |
| Inventory turnover | 0.00 | 2.69 | 2.48 | 2.41 | 2.71 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,304,060K ÷ $483,875,000K
= 0.00
Inventory turnover is a critical financial metric that measures how efficiently a company manages its inventory. In the case of Franklin Electric Co Inc, we observe fluctuations in their inventory turnover ratio over the past five years.
In 2020, the inventory turnover was 2.71, indicating that the company sold and replaced its inventory approximately 2.71 times during that year. However, in 2021, the ratio decreased to 2.41, suggesting a slightly lower efficiency in managing inventory.
The ratio further dropped to 2.48 in 2022 before increasing to 2.69 in 2023, indicating an improvement in inventory turnover efficiency. However, it is worth noting that in 2024, the inventory turnover ratio shows as 0.00, which is an aberration or possibly a data reporting error that needs further investigation.
Overall, Franklin Electric Co Inc's inventory turnover ratio shows variability over the years, and management may need to closely monitor inventory levels and sales to ensure optimal inventory turnover efficiency in the future.
Peer comparison
Dec 31, 2024