Franklin Electric Co Inc (FELE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 243,645 | 251,795 | 256,373 | 258,127 | 262,797 | 267,835 | 269,775 | 269,854 | 257,189 | 248,174 | 224,724 | 195,343 | 189,193 | 176,359 | 168,149 | 150,481 | 130,511 | 124,740 | 119,075 | 128,833 |
| Total assets | US$ in thousands | 1,820,610 | 1,807,240 | 1,784,350 | 1,773,110 | 1,728,120 | 1,725,300 | 1,803,080 | 1,803,450 | 1,694,200 | 1,715,010 | 1,751,540 | 1,683,190 | 1,575,160 | 1,545,980 | 1,510,840 | 1,281,680 | 1,272,310 | 1,201,440 | 1,151,330 | 1,149,530 |
| Operating ROA | 13.38% | 13.93% | 14.37% | 14.56% | 15.21% | 15.52% | 14.96% | 14.96% | 15.18% | 14.47% | 12.83% | 11.61% | 12.01% | 11.41% | 11.13% | 11.74% | 10.26% | 10.38% | 10.34% | 11.21% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $243,645K ÷ $1,820,610K
= 13.38%
Operating ROA is a key financial ratio that measures a company's ability to generate profit from its assets through its core operating activities. Franklin Electric Co Inc's operating ROA has shown a fluctuating trend over the past years, indicating varying levels of efficiency in utilizing its assets to generate operating income.
From March 31, 2020, to December 31, 2024, the operating ROA ranged from a low of 10.26% in December 2020 to a peak of 15.52% in September 2023. Notably, the ratio displayed an overall increasing trend from 11.21% in March 2020 to 13.38% in December 2024, with some fluctuations in between.
The company experienced significant improvements in operating ROA in the latter half of 2022 and throughout 2023, reaching its highest levels in September 2023. This could indicate enhanced operational efficiency and profitability during that period. However, towards the end of 2024, the ratio began to decline gradually, suggesting a potential decrease in the company's ability to generate returns from its operating assets.
Overall, the fluctuating trend in Franklin Electric Co Inc's operating ROA highlights the importance of closely monitoring the company's operational performance and asset utilization to ensure sustainable profitability and efficient resource management.
Peer comparison
Dec 31, 2024