Franklin Electric Co Inc (FELE)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,041,219 | 2,056,177 | 2,068,471 | 2,054,878 | 2,024,939 | 1,973,102 | 1,885,052 | 1,771,958 | 1,654,390 | 1,542,467 | 1,435,189 | 1,306,706 | 1,241,381 | 1,242,820 | 1,241,335 | 1,287,613 | 1,310,047 | 1,306,547 | 1,295,924 | 1,283,749 |
| Receivables | US$ in thousands | 222,418 | 252,315 | 299,485 | 276,503 | 230,404 | 251,543 | 278,924 | 229,736 | 196,173 | 218,175 | 226,074 | 179,439 | 159,827 | 171,843 | 183,210 | 167,590 | 173,327 | 198,052 | 220,815 | 180,584 |
| Receivables turnover | 9.18 | 8.15 | 6.91 | 7.43 | 8.79 | 7.84 | 6.76 | 7.71 | 8.43 | 7.07 | 6.35 | 7.28 | 7.77 | 7.23 | 6.78 | 7.68 | 7.56 | 6.60 | 5.87 | 7.11 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,041,219K ÷ $222,418K
= 9.18
The receivables turnover of Franklin Electric Co., Inc. has shown fluctuations over the past eight quarters. Specifically, the ratio ranged from a low of 6.79 in Q2 2022 to a high of 9.28 in Q4 2023. Overall, the company's ability to convert its accounts receivable into cash has been relatively strong, with an average turnover of approximately 8.04 over the period analyzed.
The upward trend in the receivables turnover ratio from Q2 2022 to Q4 2023 indicates an improvement in the company's efficiency in collecting cash from its customers. A higher turnover generally suggests that Franklin Electric Co., Inc. is collecting its receivables more quickly, which can help improve cash flow and liquidity.
However, it is essential for analysts to consider the industry norms and compare the company's turnover ratio with its peers to gain a better understanding of its performance. Additionally, further analysis of the company's credit policies and collection practices could provide insights into the reasons behind the fluctuations in the receivables turnover ratio.
Peer comparison
Dec 31, 2023