Franklin Electric Co Inc (FELE)
Receivables 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 |
| Receivables | US$ in thousands | 222,418 | 230,404 | 196,173 | 159,827 | 173,327 |
| Receivables turnover | 9.18 | 8.79 | 8.43 | 7.77 | 7.53 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,041,220K ÷ $222,418K
= 9.18
Franklin Electric Co., Inc.'s receivables turnover has shown a positive trend over the past five years, indicating efficiency in collecting receivables. The ratio increased from 7.58 in 2019 to 9.28 in 2023, which suggests that the company has been able to convert its accounts receivables into cash more quickly in recent years.
A higher receivables turnover ratio generally signifies that the company is effectively managing its credit sales and collecting payments promptly. It reflects a shorter average collection period, which can improve the company's liquidity and overall financial health.
The consistent increase in the receivables turnover ratio from 2019 to 2023 indicates that Franklin Electric Co., Inc. has improved its credit management practices and is likely operating more efficiently in terms of collecting revenue owed by customers. This trend is a positive sign for the company's working capital management and indicates effectiveness in managing its accounts receivables.
Peer comparison
Dec 31, 2023