Franklin Electric Co Inc (FELE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 220,540,000 | 84,963 | 45,790 | 40,536 | 130,787 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 433,727,000 | 287,039 | 405,769 | 396,014 | 203,704 |
| Cash ratio | 0.51 | 0.30 | 0.11 | 0.10 | 0.64 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($220,540,000K
+ $—K)
÷ $433,727,000K
= 0.51
The cash ratio of Franklin Electric Co Inc has fluctuated over the past five years, ranging from 0.10 to 0.64. In 2020, the company had a relatively strong cash position with a cash ratio of 0.64, indicating that it had $0.64 in cash and cash equivalents for every dollar of current liabilities. However, there was a significant decline in the cash ratio in 2021 and 2022, dropping to 0.10 and 0.11, respectively. This suggests that the company had a lower level of liquid assets available to cover its short-term obligations during those years.
There was a notable improvement in the cash ratio in 2023, increasing to 0.30, which indicates that Franklin Electric Co Inc had strengthened its cash position compared to the previous year. Furthermore, in 2024, the cash ratio further improved to 0.51, nearing the level observed in 2020. This signifies that the company enhanced its liquidity position, having $0.51 in cash and cash equivalents for every dollar of current liabilities by the end of 2024.
Overall, analyzing the trend in the cash ratio over the five-year period indicates fluctuations in Franklin Electric Co Inc's liquidity position, with notable improvements in 2023 and 2024 following the significant decline in 2021 and 2022. Investors and stakeholders may closely monitor the company's cash management strategies and liquidity levels to assess its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2024