Franklin Electric Co Inc (FELE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 238,166 | 254,013 | 268,759 | 194,902 | 128,324 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,266,100,000 | 1,206,720 | 1,067,910 | 946,482 | 847,833 |
| Return on total capital | 0.02% | 21.05% | 25.17% | 20.59% | 15.14% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $238,166K ÷ ($—K + $1,266,100,000K)
= 0.02%
The return on total capital for Franklin Electric Co Inc has shown a positive trend over the period from December 31, 2020, to December 31, 2023, increasing from 15.14% to 25.17%. This indicates the company's ability to generate profits from its total capital employed has been improving. However, there was a notable decrease in the return on total capital to 21.05% by December 31, 2023, which suggests a possible decline in efficiency or profitability during that period. Moreover, by December 31, 2024, the return on total capital dropped significantly to 0.02%, indicating a substantial decrease in the company's ability to generate returns in relation to its total capital. It is recommended that further analysis be conducted to understand the factors contributing to this drastic decline in the return on total capital.
Peer comparison
Dec 31, 2024