Franklin Electric Co Inc (FELE)

Based on the provided data, Franklin Electric Co Inc's liquidity ratios have been fluctuating over the years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its current assets.
- Franklin Electric Co Inc's current ratio has decreased from 3.04 in 2020 to 1.83 in 2021, showing a significant decline in liquidity.
- However, there has been an improvement in the current ratio in the following years, reaching 2.11 in 2022, 2.97 in 2023, and then slightly dropping to 2.22 in 2024.

2. Quick Ratio:
- The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets.
- Franklin Electric Co Inc's quick ratio was very low at 0.10 in both 2021 and 2022, indicating a potential liquidity issue.
- The quick ratio improved to 0.30 in 2023 and then further to 0.51 in 2024, suggesting an enhancement in the company's ability to meet its short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity ratio as it considers only cash and cash equivalents to cover current liabilities.
- Franklin Electric Co Inc's cash ratio was also 0.10 in both 2021 and 2022, showing a lack of available cash to cover immediate liabilities.
- Similarly to the quick ratio, the cash ratio improved to 0.30 in 2023 and then further to 0.51 in 2024, indicating an increase in the company's ability to cover its short-term obligations with cash and equivalents.

In conclusion, Franklin Electric Co Inc has shown fluctuations in its liquidity ratios over the years, with improvements in recent years indicating a better ability to meet short-term obligations, especially in terms of cash availability. However, the company should continue to monitor and manage its liquidity position effectively to ensure financial stability and meet its ongoing obligations.

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Additional liquidity measure

The cash conversion cycle of Franklin Electric Co Inc has fluctuated over the past five years. In December 2020, the company's cash conversion cycle was 134.91 days, which increased to 151.27 days by December 2021. Subsequently, there was a slight decrease to 147.10 days by December 2022, followed by a further decrease to 135.71 days by December 2023.

However, there appears to be a significant anomaly in the data for December 31, 2024, where the cash conversion cycle is reported as 135,434.24 days. This data point is highly unusual and likely a data entry error or anomaly, as such an extraordinarily high cash conversion cycle is not feasible or realistic for a company like Franklin Electric Co Inc.

Overall, it is important for the company to closely monitor and manage its cash conversion cycle to ensure efficient utilization of its working capital and overall financial health.