Franklin Electric Co Inc (FELE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.59 | 1.66 | 1.50 | 1.50 |
The solvency ratios of Franklin Electric Co., Inc. over the past five years indicate a relatively stable and healthy financial position in terms of its ability to meet long-term obligations.
The debt-to-assets ratio has shown a decreasing trend from 2019 to 2023, reflecting that the company's debt level compared to its total assets has been decreasing over the years. This suggests that the company has been efficient in managing its assets to generate revenue and pay down debt.
Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a declining trend over the same period. These ratios indicate the proportion of debt in the company's capital structure and the level of financial leverage, respectively. A lower debt-to-capital and debt-to-equity ratio signifies a lower reliance on debt financing and a stronger equity position, which is generally favorable for long-term financial stability.
The financial leverage ratio, which measures the company's use of debt in its capital structure, has shown a slight fluctuation but has been relatively stable around 1.50 over the past five years. A financial leverage ratio of 1.50 implies that the company has $1.50 in assets for every $1 in equity, indicating a reasonable level of leverage that is well-managed.
Overall, based on the solvency ratios analyzed, Franklin Electric Co., Inc. appears to have a solid financial position with a decreasing trend in debt-related ratios, which suggests prudent financial management and a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 21.42 | 21.28 | 37.30 | 27.59 | 15.10 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Franklin Electric Co., Inc. has exhibited a consistently strong interest coverage performance over the past five years. The interest coverage ratio has ranged from 15.72 to 36.53 during this period.
The trend shows a positive and stable interest coverage ratio, indicating that Franklin Electric Co., Inc. has comfortably generated sufficient operating income to cover its interest expenses. In 2021, the company achieved a high interest coverage ratio of 36.53, reflecting a robust ability to meet interest payments.
Overall, the consistent and high interest coverage ratios of Franklin Electric Co., Inc. suggest that the company has a strong financial position and is capable of servicing its debt obligations comfortably with its operating income.