Franklin Electric Co Inc (FELE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.97 | 2.11 | 1.83 | 3.04 | 3.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $853,795K ÷ $287,039K
= 2.97
The current ratio of Franklin Electric Co., Inc. has fluctuated over the past five years. In 2023, the current ratio stands at 2.97, representing a significant improvement from the previous year's ratio of 2.11. This indicates that the company's current assets are almost three times its current liabilities, which suggests a healthier liquidity position.
Comparing the current ratio to previous years, it is evident that the ratio improved in 2023 after a decline in 2022. The ratio was at its lowest in 2021 at 1.83, indicating a potential liquidity concern. However, the company managed to strengthen its liquidity position in the following years.
Overall, a current ratio above 1 is considered a good indicator of short-term financial health, with higher ratios indicating a stronger ability to cover short-term obligations. Franklin Electric Co., Inc.'s current ratio of 2.97 in 2023 reflects a sound liquidity position, suggesting that the company has ample current assets to meet its current liabilities.
Peer comparison
Dec 31, 2023