Franklin Electric Co Inc (FELE)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 180,309 | 185,203 | 188,405 | 188,906 | 193,272 | 194,302 | 194,928 | 194,692 | 187,032 | 188,120 | 175,568 | 155,345 | 153,560 | 139,687 | 132,187 | 117,497 | 100,260 | 93,241 | 88,576 | 96,670 |
| Total stockholders’ equity | US$ in thousands | 1,268,610 | 1,269,640 | 1,222,170 | 1,220,420 | 1,206,740 | 1,180,430 | 1,146,660 | 1,092,430 | 1,067,910 | 1,025,180 | 986,087 | 961,707 | 946,482 | 923,015 | 901,299 | 861,429 | 847,833 | 810,569 | 773,864 | 751,179 |
| ROE | 14.21% | 14.59% | 15.42% | 15.48% | 16.02% | 16.46% | 17.00% | 17.82% | 17.51% | 18.35% | 17.80% | 16.15% | 16.22% | 15.13% | 14.67% | 13.64% | 11.83% | 11.50% | 11.45% | 12.87% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $180,309K ÷ $1,268,610K
= 14.21%
Franklin Electric Co Inc's Return on Equity (ROE) has shown a positive trend over the past few years, reflecting the company's ability to generate profit from shareholders' equity. Starting at 12.87% in March 2020, the ROE increased gradually, reaching a peak of 18.35% in September 2022. This growth indicates efficient utilization of equity to generate profits.
However, starting from December 2022, the ROE experienced a slight decline, dropping to 14.21% by December 2024. This decrease could suggest challenges in maintaining or growing profits relative to the equity invested. Despite the recent decline, the ROE still remains above the initial levels, indicating that Franklin Electric Co Inc continues to generate reasonable returns for its shareholders.
It is important for the company to focus on strategies that will improve profitability and efficiency in the utilization of equity in order to sustain and enhance its return on equity in the future.
Peer comparison
Dec 31, 2024