Franklin Electric Co Inc (FELE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,819,790 | 1,803,720 | 1,487,070 | 1,126,220 | 1,196,840 |
| Inventory | US$ in thousands | 508,696 | 544,980 | 449,975 | 300,932 | 300,246 |
| Inventory turnover | 3.58 | 3.31 | 3.30 | 3.74 | 3.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,819,790K ÷ $508,696K
= 3.58
The inventory turnover for Franklin Electric Co., Inc. has fluctuated over the past five years. In 2023, the company's inventory turnover ratio improved to 2.69 compared to the previous year, indicating that the company sold its inventory approximately 2.69 times during the year. This is an encouraging sign as it suggests that the company is managing its inventory more efficiently, possibly due to better inventory management practices or increased demand for its products.
In 2022, the inventory turnover was 2.48, slightly lower than in 2021, which could indicate some challenges in selling inventory during that period. However, the ratio rebounded in 2023, reflecting a positive trend.
Compared to 2020 and 2019, where the inventory turnover ratios were 2.71 and 2.95 respectively, the company's inventory turnover has been slightly lower in recent years. This could indicate that Franklin Electric Co., Inc. may have experienced some challenges in efficiently managing its inventory turnover in those years.
Overall, while there have been fluctuations in inventory turnover ratios, the recent improvement in 2023 is a positive development for Franklin Electric Co., Inc., suggesting better inventory management and potentially improved sales performance.
Peer comparison
Dec 31, 2023