Franklin Electric Co Inc (FELE)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,819,792 | 1,830,759 | 1,842,060 | 1,824,038 | 1,803,722 | 1,755,726 | 1,686,623 | 1,601,246 | 1,487,172 | 1,386,792 | 1,285,273 | 1,172,742 | 1,126,320 | 1,131,092 | 1,133,983 | 1,171,284 | 1,199,650 | 1,196,025 | 1,191,857 | 1,183,604 |
| Payables | US$ in thousands | 152,419 | 170,862 | 161,266 | 187,985 | 139,266 | 153,540 | 195,614 | 190,488 | 164,758 | 163,941 | 148,862 | 109,984 | 95,903 | 97,638 | 86,767 | 88,388 | 82,593 | 94,531 | 99,654 | 91,399 |
| Payables turnover | 11.94 | 10.71 | 11.42 | 9.70 | 12.95 | 11.43 | 8.62 | 8.41 | 9.03 | 8.46 | 8.63 | 10.66 | 11.74 | 11.58 | 13.07 | 13.25 | 14.52 | 12.65 | 11.96 | 12.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,819,792K ÷ $152,419K
= 11.94
Over the past eight quarters, Franklin Electric Co., Inc. has demonstrated consistent performance in managing its payables turnover. The payables turnover ratio indicates how many times a company pays off its average accounts payable balance during a period.
The trend in payables turnover for Franklin Electric Co., Inc. shows a fluctuation from a low of 6.17 in Q1 2022 to a high of 9.71 in Q4 2022. Notably, the company's payables turnover improved in the recent quarters of 2023, with values above 8; the highest was recorded in Q4 2023 at 8.98.
A higher payables turnover ratio typically indicates that a company is paying off its suppliers more quickly, which may reflect efficient management of cash flows and strong supplier relationships. Franklin Electric Co., Inc.'s consistently high payables turnover ratios suggest that the company is effectively managing its accounts payable obligations, possibly benefiting from discounts and favorable payment terms from suppliers.
Overall, the trend in Franklin Electric Co., Inc.'s payables turnover ratio signals a proactive approach in managing its accounts payable, potentially contributing to improved liquidity and financial health. Monitoring this ratio over time can provide insights into the company's financial management strategies and supplier relationships.
Peer comparison
Dec 31, 2023