Franklin Electric Co Inc (FELE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 193,272 | 187,332 | 153,860 | 100,500 | 95,483 |
| Total assets | US$ in thousands | 1,728,100 | 1,694,200 | 1,575,200 | 1,272,300 | 1,194,700 |
| ROA | 11.18% | 11.06% | 9.77% | 7.90% | 7.99% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $193,272K ÷ $1,728,100K
= 11.18%
Franklin Electric Co., Inc.'s return on assets (ROA) has shown a generally positive trend over the past five years, reflecting the company's ability to generate earnings from its asset base. In 2023, the ROA was 11.14%, slightly lower than the previous year's 11.39% but still at a healthy level. This indicates that for every dollar of assets the company holds, it generated a net income of around 11.14 cents.
The upward trend in ROA from 2019 (8.01%) to 2022 (11.39%) signals an improvement in the efficiency of asset utilization and overall profitability of Franklin Electric Co., Inc. However, the slight dip in 2023 warrants further investigation to identify any potential factors that may have impacted the company's ability to generate earnings from its assets.
Overall, Franklin Electric Co., Inc. has been effectively managing its asset base to drive profitability, as indicated by the increasing ROA figures in recent years. It would be important for stakeholders to closely monitor future ROA performance to ensure sustained efficient asset utilization and continued financial success.
Peer comparison
Dec 31, 2023