Franklin Electric Co Inc (FELE)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 252,551 | 245,257 | 193,787 | 127,667 | 124,528 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,206,720 | 1,067,860 | 946,501 | 847,833 | 796,545 |
| Return on total capital | 20.93% | 22.97% | 20.47% | 15.06% | 15.63% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $252,551K ÷ ($—K + $1,206,720K)
= 20.93%
The return on total capital for Franklin Electric Co., Inc. has shown a generally positive trend over the past five years, with consistent improvement from 2019 to 2023. The company's return on total capital increased from 14.22% in 2019 to 20.16% in 2023, indicating that the company has been able to generate more profits relative to its total capital employed.
This upward trend is a positive indicator of the company's efficiency in utilizing its capital to generate returns for its investors. The successive increases in return on total capital suggest that Franklin Electric Co., Inc. has been effectively managing its capital investments and operating efficiently to enhance profitability.
The consistent improvement in return on total capital reflects positively on the company's financial performance and management's ability to drive value for shareholders. This trend could indicate that Franklin Electric Co., Inc. is becoming more successful in generating profits relative to the capital invested in its operations over the years.
Peer comparison
Dec 31, 2023