Franklin Electric Co Inc (FELE)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 252,551 | 256,620 | 256,162 | 257,306 | 245,210 | 245,500 | 228,395 | 199,060 | 193,787 | 174,220 | 163,833 | 146,601 | 127,682 | 119,003 | 115,808 | 126,107 | 124,553 | 130,624 | 124,423 | 121,577 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,206,720 | 1,180,430 | 1,146,660 | 1,092,430 | 1,067,860 | 1,025,180 | 986,087 | 961,707 | 946,501 | 923,015 | 901,299 | 861,429 | 847,833 | 810,569 | 773,864 | 751,179 | 796,545 | 775,194 | 759,188 | 734,095 |
| Return on total capital | 20.93% | 21.74% | 22.34% | 23.55% | 22.96% | 23.95% | 23.16% | 20.70% | 20.47% | 18.88% | 18.18% | 17.02% | 15.06% | 14.68% | 14.96% | 16.79% | 15.64% | 16.85% | 16.39% | 16.56% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $252,551K ÷ ($—K + $1,206,720K)
= 20.93%
Franklin Electric Co., Inc.'s return on total capital has shown a consistent positive trend over the past eight quarters, ranging between 15.77% and 20.54%. The return on total capital measures how efficiently the company is generating profits from its total capital employed, including both equity and debt.
The highest return on total capital was recorded in Q3 2023 at 20.54%, indicating that the company was particularly effective in utilizing its capital to generate profits during that period. This was followed closely by Q4 2023, where the return on total capital stood at 20.16%.
Overall, the company has demonstrated strong performance in terms of generating returns relative to the capital invested. The consistent levels of return on total capital above 15% suggest that Franklin Electric Co., Inc. has been effectively managing its capital structure and deploying its resources to generate profits for its shareholders. This consistent performance is a positive indication of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023