Franklin Electric Co Inc (FELE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.49% | 33.75% | 33.83% | 34.67% | 34.73% |
| Operating profit margin | 12.05% | 12.71% | 12.58% | 11.38% | 10.46% |
| Pretax margin | 11.47% | 11.73% | 11.51% | 11.42% | 9.92% |
| Net profit margin | 8.92% | 9.36% | 9.17% | 9.26% | 8.05% |
Based on the provided data, Franklin Electric Co Inc's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The gross profit margin has ranged from 33.83% in 2022 to 35.49% in 2024. The company has maintained a relatively stable gross profit margin, indicating efficient cost management and pricing strategies in generating profits from its core operations.
2. Operating Profit Margin: Franklin Electric Co Inc's operating profit margin has increased from 10.46% in 2020 to 12.05% in 2024. This improvement suggests that the company has effectively controlled its operating expenses and enhanced operational efficiency to increase profitability.
3. Pretax Margin: The pretax margin has shown a slight fluctuation, ranging from 9.92% in 2020 to 11.73% in 2023. The company has been able to effectively manage its pre-tax profits relative to its total revenue, demonstrating sound financial management practices.
4. Net Profit Margin: Franklin Electric Co Inc's net profit margin has ranged from 8.05% in 2020 to 9.36% in 2023. Despite some variability, the company has maintained a consistent level of net profit relative to its total revenue, indicating its ability to generate bottom-line profits efficiently.
Overall, Franklin Electric Co Inc has shown overall stable and improving profitability ratios over the past five years, reflecting effective operational and financial management practices.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.01% | 15.19% | 15.18% | 12.01% | 10.26% |
| Return on assets (ROA) | 0.01% | 11.18% | 11.06% | 9.77% | 7.90% |
| Return on total capital | 0.02% | 21.05% | 25.17% | 20.59% | 15.14% |
| Return on equity (ROE) | 0.01% | 16.02% | 17.54% | 16.26% | 11.85% |
The profitability ratios of Franklin Electric Co Inc show a positive trend from 2020 to 2023, followed by a significant decline in 2024.
- Operating Return on Assets (Operating ROA) increased steadily from 10.26% in 2020 to 15.19% in 2023, indicating efficient management of assets to generate operating profits. However, there was a sharp drop to 0.01% in 2024, which is a cause for concern.
- Return on Assets (ROA) also showed a similar trend, improving from 7.90% in 2020 to 11.18% in 2023. The sharp decline to 0.01% in 2024 suggests that the company's overall profitability relative to its total assets significantly decreased.
- Return on Total Capital increased from 15.14% in 2020 to 25.17% in 2022, indicating strong returns on the total invested capital. However, there was a notable decline to 0.02% in 2024, which raises questions about the company's ability to generate returns on the capital employed.
- Return on Equity (ROE) showed a consistent growth pattern from 11.85% in 2020 to 17.54% in 2022, reflecting an increase in profitability for equity investors. The sharp decline to 0.01% in 2024 indicates a significant decrease in returns available to shareholders.
In conclusion, Franklin Electric Co Inc demonstrated strong profitability metrics up to 2023, but the sharp decline in 2024 raises concerns about the company's ability to sustain its profitability levels in the future.