Franklin Electric Co Inc (FELE)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,206,720K)
= 0.00
The debt-to-capital ratio of Franklin Electric Co., Inc. has fluctuated over the past eight quarters. It decreased from 0.23 in Q1 2022 to 0.08 in Q4 2023, indicating a significant reduction in the proportion of debt to total capital over this period. This downward trend suggests that the company may be actively managing its debt levels or increasing its capital base through equity financing or retained earnings.
However, it is important to note that the ratio increased in Q2 and Q3 2023, reaching 0.18 and 0.20, respectively, before declining again in the following quarters. These temporary increases may indicate periods of higher borrowing or decreased capital reserves, which could potentially pose risks to the company's financial stability.
Overall, the downward trend in the debt-to-capital ratio of Franklin Electric Co., Inc. from Q1 2022 to Q4 2023 reflects a positive development in terms of reducing reliance on debt financing and improving the overall financial health and stability of the company. Monitoring this ratio in future periods will be important to assess the company's ongoing capital structure and debt management strategies.
Peer comparison
Dec 31, 2023