Franklin Electric Co Inc (FELE)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 262,441 | 257,189 | 189,200 | 130,500 | 127,133 |
| Revenue | US$ in thousands | 2,041,220 | 2,024,940 | 1,654,440 | 1,241,280 | 1,304,690 |
| Operating profit margin | 12.86% | 12.70% | 11.44% | 10.51% | 9.74% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $262,441K ÷ $2,041,220K
= 12.86%
The operating profit margin of Franklin Electric Co., Inc. has shown a consistent upward trend over the past five years. The company's operating profit margin has increased from 9.86% in 2019 to 12.76% in 2023. This indicates that Franklin Electric Co., Inc. has been able to effectively control its operating expenses relative to its revenue, leading to improved profitability.
A higher operating profit margin suggests that the company is generating more profit from its core operations for each dollar of sales. This can be attributed to various factors such as cost-cutting measures, operational efficiencies, pricing strategies, or increased sales volume.
Overall, the improvement in the operating profit margin reflects positively on the company's ability to manage its operating costs efficiently and generate stronger profits from its business activities.
Peer comparison
Dec 31, 2023