Franklin Electric Co Inc (FELE)

Liquidity ratios

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
Current ratio 2.97 2.74 2.23 1.99 2.11 1.92 1.69 1.70 1.83 1.81 1.79 3.17 3.04 3.21 3.16 2.84 3.05 2.40 2.15 2.13
Quick ratio 1.07 0.96 0.82 0.67 0.68 0.63 0.58 0.55 0.60 0.73 0.80 1.49 1.43 1.52 1.30 1.08 1.28 0.96 0.87 0.83
Cash ratio 0.30 0.19 0.12 0.11 0.11 0.09 0.06 0.08 0.10 0.19 0.21 0.59 0.64 0.61 0.25 0.21 0.35 0.19 0.14 0.19

The current ratio for Franklin Electric Co., Inc. has shown a generally increasing trend over the past eight quarters, indicating an improving liquidity position. From Q1 2022 to Q4 2023, the current ratio has increased from 1.99 to 2.97, reflecting the ability of the company to meet its short-term obligations with its current assets.

Similarly, the quick ratio has also displayed a positive trend, increasing from 0.75 in Q1 2023 to 1.20 in Q4 2023. This implies that the company has an increased ability to cover its immediate liabilities using its most liquid assets.

On the other hand, the cash ratio, which measures the proportion of cash and cash equivalents to current liabilities, has fluctuated over the periods. While there is some volatility in this ratio, the general upward trend from 0.19 in Q1 2023 to 0.43 in Q4 2023 indicates an improving ability of Franklin Electric Co., Inc. to cover its short-term obligations using cash on hand.

Overall, the liquidity ratios suggest that Franklin Electric Co., Inc. has been strengthening its liquidity position over the past eight quarters, which is a positive indicator for the company's financial health and ability to meet its short-term obligations.

Additional liquidity measure

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
Cash conversion cycle days 111.23 119.09 134.76 131.69 123.63 130.53 134.41 124.23 113.28 112.58 114.65 112.48 113.44 112.31 122.31 116.57 114.51 128.35 139.59 126.97

The cash conversion cycle of Franklin Electric Co., Inc. has fluctuated over the past eight quarters. The cycle started at 151.96 days in Q1 2022, decreased to 150.66 days in Q4 2022, and then increased consistently until reaching 160.94 days in Q2 2023. However, in the most recent quarter, Q4 2023, the cash conversion cycle decreased to 134.36 days.

Overall, the cash conversion cycle indicates the time it takes for Franklin Electric to convert its investments in inventory and other resources into cash inflows from sales. A lower cycle duration suggests that the company is managing its working capital efficiently and is converting its resources into cash quickly.

Despite the fluctuations observed in the past quarters, it is important for Franklin Electric to continuously monitor and manage its cash conversion cycle to ensure optimal working capital management. This would help the company maintain liquidity, improve cash flow positions, and potentially enhance overall financial performance.