Franklin Electric Co Inc (FELE)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 235,218 | 243,728 | 246,193 | 248,755 | 255,964 | 264,474 | 268,005 | 272,069 | 260,076 | 254,021 | 232,839 | 200,246 | 194,902 | 174,853 | 163,131 | 146,357 | 129,717 | 125,113 | 121,311 | 132,539 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 18.54% | 19.20% | 20.14% | 20.38% | 21.21% | 22.40% | 23.37% | 24.90% | 24.35% | 24.78% | 23.61% | 20.82% | 20.59% | 18.94% | 18.10% | 16.99% | 15.30% | 15.44% | 15.68% | 17.64% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $235,218K ÷ ($—K + $1,268,610K)
= 18.54%
Franklin Electric Co Inc has shown a fluctuating trend in its return on total capital over the past few years. The ratio increased from 17.64% in March 2020 to a peak of 24.90% in March 2023, indicating an improvement in the company's ability to generate returns on its total capital. However, the ratio declined thereafter to 18.54% by December 2024. This downward trend suggests a potential decrease in the company's profitability and efficiency in utilizing its total capital to generate returns for its investors. Overall, Franklin Electric Co Inc should closely monitor and evaluate its capital allocation strategies to sustain and enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024