Franklin Electric Co Inc (FELE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 220,540,000 | 84,963 | 45,790 | 40,536 | 130,787 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 433,727,000 | 287,039 | 405,769 | 396,014 | 203,704 |
| Quick ratio | 0.51 | 0.30 | 0.11 | 0.10 | 0.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($220,540,000K
+ $—K
+ $—K)
÷ $433,727,000K
= 0.51
The quick ratio of Franklin Electric Co Inc has fluctuated over the years. It stood at 0.64 on December 31, 2020, reflecting a strong ability to meet short-term obligations with quick assets. However, by December 31, 2021, the quick ratio had dropped to a concerning 0.10, indicating a significant decrease in the company's liquidity and potentially raising questions about its ability to cover immediate liabilities. The ratio remained low at 0.11 on December 31, 2022, suggesting ongoing liquidity challenges. There was a notable improvement by December 31, 2023, with the quick ratio increasing to 0.30, though it still indicates a relatively limited ability to settle short-term obligations promptly. Finally, as of December 31, 2024, the quick ratio had risen further to 0.51, showing continued progress in liquidity management but remaining below industry benchmarks. Overall, the fluctuating trend of the quick ratio highlights the importance for Franklin Electric Co Inc to closely monitor its liquidity position and take appropriate measures to strengthen its ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2024