Franklin Electric Co Inc (FELE)
Working capital 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 |
| Total current assets | US$ in thousands | 853,795 | 858,090 | 724,647 | 619,254 | 567,444 |
| Total current liabilities | US$ in thousands | 287,039 | 405,769 | 396,014 | 203,704 | 185,764 |
| Working capital turnover | 3.60 | 4.48 | 5.03 | 2.99 | 3.42 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,041,220K ÷ ($853,795K – $287,039K)
= 3.60
The working capital turnover of Franklin Electric Co., Inc. has exhibited some fluctuations over the past five years. The company's working capital turnover ratio decreased from 3.44 in 2019 to 3.00 in 2020, indicating a decline in how efficiently the company was utilizing its working capital to generate sales during that period. However, there was a notable recovery in 2021 when the ratio increased to 5.06, suggesting improved efficiency in the utilization of working capital to drive revenue.
In 2022, the working capital turnover ratio further improved to 4.52, indicating that the company was able to generate sales more efficiently in relation to its working capital. However, in 2023, the ratio dropped to 3.64, though still higher than the 2020 level, suggesting a slight decrease in efficiency compared to the previous year.
Overall, the fluctuation in Franklin Electric Co., Inc.'s working capital turnover ratios over the years indicates varying levels of effectiveness in utilizing working capital to support sales activities. It is essential for the company to closely monitor and manage its working capital efficiency to ensure optimal performance and financial health.
Peer comparison
Dec 31, 2023