Franklin Electric Co Inc (FELE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.15% | 34.15% | 34.82% | 34.89% | 32.81% |
| Operating profit margin | 12.86% | 12.70% | 11.44% | 10.51% | 9.74% |
| Pretax margin | 11.79% | 11.54% | 11.40% | 9.91% | 8.91% |
| Net profit margin | 9.47% | 9.25% | 9.30% | 8.10% | 7.32% |
Franklin Electric Co., Inc. has shown consistent performance in terms of profitability ratios over the past five years. The company's gross profit margin has remained stable, ranging from 32.57% in 2019 to 34.67% in 2021, indicating that the company is efficiently managing its production costs.
The operating profit margin has also exhibited a positive trend, with an increase from 9.86% in 2019 to 12.76% in 2023. This suggests that Franklin Electric Co., Inc. has been successful in controlling its operating expenses and improving operational efficiency over the years.
Similarly, the pretax margin has shown an upward trend, from 8.95% in 2019 to 11.73% in 2023. This indicates that the company has been effective in managing its pre-tax income relative to its total revenue.
Furthermore, the net profit margin has also improved gradually, with an increase from 7.28% in 2019 to 9.32% in 2023. This growth reflects the company's ability to efficiently manage its overall expenses, including taxes and interest payments, to generate profits for its shareholders.
Overall, Franklin Electric Co., Inc. has demonstrated strong profitability ratios over the years, indicating effective cost management and operational efficiency in generating profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.19% | 15.18% | 12.01% | 10.26% | 10.64% |
| Return on assets (ROA) | 11.18% | 11.06% | 9.77% | 7.90% | 7.99% |
| Return on total capital | 20.93% | 22.97% | 20.47% | 15.06% | 15.63% |
| Return on equity (ROE) | 16.02% | 17.54% | 16.26% | 11.85% | 11.99% |
The profitability ratios of Franklin Electric Co., Inc. show a generally positive trend over the past five years.
1. Operating Return on Assets (Operating ROA): The operating ROA has shown incremental improvement from 10.85% in 2019 to 15.25% in 2023. This indicates that the company has been effectively generating operating income relative to its total assets.
2. Return on Assets (ROA): The ROA has also exhibited a positive trend, increasing from 8.01% in 2019 to 11.14% in 2023. This suggests that the company has been able to generate more profits from its assets over time.
3. Return on Total Capital: The return on total capital has shown consistent growth, reaching 20.16% in 2023 from 14.22% in 2019. This indicates that the company has been successful in utilizing its total capital efficiently to generate returns for its stakeholders.
4. Return on Equity (ROE): The ROE has varied over the years but has generally increased from 12.01% in 2019 to 15.96% in 2023. This demonstrates that the company has been able to generate higher returns on the equity invested by shareholders.
Overall, the profitability ratios of Franklin Electric Co., Inc. reflect a positive performance in terms of generating profits in relation to assets, capital, and equity. The increasing trend across these ratios signifies the company's ability to efficiently utilize its resources to drive profitability and create value for its investors.