Franklin Electric Co Inc (FELE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 84,963 | 45,790 | 40,536 | 130,787 | 64,405 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 222,418 | 230,404 | 196,173 | 159,827 | 173,327 |
| Total current liabilities | US$ in thousands | 287,039 | 405,769 | 396,014 | 203,704 | 185,764 |
| Quick ratio | 1.07 | 0.68 | 0.60 | 1.43 | 1.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($84,963K
+ $—K
+ $222,418K)
÷ $287,039K
= 1.07
The quick ratio of Franklin Electric Co., Inc. has displayed fluctuations over the past five years. In 2023, the quick ratio improved to 1.20, indicating that the company's ability to meet its short-term liabilities with its most liquid assets has strengthened compared to the prior year. However, it should be noted that in 2022 and 2021, the quick ratio was below 1, signaling potential liquidity challenges in those years.
The significant increase in the quick ratio in 2020 suggests that the company had ample liquid assets to cover its short-term obligations at that time. Similarly, in 2019, the quick ratio was at a healthy level of 1.44, indicating a favorable liquidity position.
Overall, while the quick ratio has shown variability, an upward trend is observed in the recent year, which may indicate improved liquidity and financial stability for Franklin Electric Co., Inc.
Peer comparison
Dec 31, 2023