Franklin Electric Co Inc (FELE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 180,309 | 193,272 | 187,332 | 153,860 | 100,460 |
| Total stockholders’ equity | US$ in thousands | 1,266,100,000 | 1,206,720 | 1,067,910 | 946,482 | 847,833 |
| ROE | 0.01% | 16.02% | 17.54% | 16.26% | 11.85% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $180,309K ÷ $1,266,100,000K
= 0.01%
Franklin Electric Co Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. Starting at 11.85% in December 31, 2020, the ROE increased to 16.26% by December 31, 2021, indicating an improvement in the company's ability to generate profits from shareholders' equity. Subsequently, the ROE continued to rise to 17.54% by December 31, 2022, reaching its peak during this period.
However, by December 31, 2023, the ROE declined slightly to 16.02%, suggesting a potential decrease in profitability relative to the previous year. The most recent data point of December 31, 2024, shows a significant drop in ROE to 0.01%, which raises concerns about the company's ability to generate adequate returns on shareholder investment.
In conclusion, despite experiencing fluctuations, the overall trend of Franklin Electric Co Inc's ROE reflects a mix of positive and concerning signals regarding the company's profitability and efficiency in utilizing shareholder equity. Additional analysis and investigation into the factors affecting ROE performance may be necessary to understand these fluctuations better.
Peer comparison
Dec 31, 2024