Franklin Electric Co Inc (FELE)
Return on assets (ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 193,272 | 194,255 | 195,081 | 194,845 | 187,285 | 188,420 | 175,968 | 155,745 | 153,860 | 139,993 | 132,193 | 117,752 | 100,515 | 93,515 | 89,050 | 97,095 | 95,508 | 99,908 | 96,001 | 93,756 |
| Total assets | US$ in thousands | 1,728,100 | 1,725,300 | 1,803,080 | 1,803,450 | 1,694,200 | 1,715,000 | 1,751,540 | 1,683,200 | 1,575,200 | 1,546,000 | 1,510,800 | 1,281,680 | 1,272,300 | 1,201,440 | 1,151,330 | 1,149,530 | 1,194,700 | 1,236,940 | 1,269,660 | 1,228,800 |
| ROA | 11.18% | 11.26% | 10.82% | 10.80% | 11.05% | 10.99% | 10.05% | 9.25% | 9.77% | 9.06% | 8.75% | 9.19% | 7.90% | 7.78% | 7.73% | 8.45% | 7.99% | 8.08% | 7.56% | 7.63% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $193,272K ÷ $1,728,100K
= 11.18%
Over the past eight quarters, Franklin Electric Co., Inc.'s return on assets (ROA) has been relatively stable, ranging from 9.25% to 11.59%. ROA is a key profitability metric that indicates how effectively the company is utilizing its assets to generate earnings.
The upward trend in ROA from Q1 2022 to Q3 2023 reflects consistent improvement in asset utilization, with the highest point reaching 11.59% in Q3 2023. This signifies that the company has been successful in generating profits relative to the total assets it holds.
Overall, the average ROA of Franklin Electric Co., Inc. over the eight quarters is approximately 10.83%, indicating that, on average, the company is generating profits equivalent to 10.83% of its total assets. This suggests efficient management of assets and profitability, which could be seen as a positive sign for investors and stakeholders.
However, it would be beneficial for stakeholders to continue monitoring ROA alongside other financial metrics to ensure sustained performance and efficiency in asset utilization over the long term.
Peer comparison
Dec 31, 2023