Franklin Electric Co Inc (FELE)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,206,720 | 1,067,860 | 946,501 | 847,833 | 796,545 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,206,720K
= 0.00
The debt-to-equity ratio of Franklin Electric Co., Inc. has shown fluctuations over the past five years. The ratio decreased from 0.20 in 2022 to 0.08 in 2023, indicating a significant reduction in the level of debt relative to equity. This decrease could suggest improved financial stability and a lower reliance on debt financing.
Comparing to the previous years, in 2021 and 2019, the debt-to-equity ratio remained fairly stable at 0.20 and 0.14, respectively. However, in 2020, the ratio decreased to 0.11, showing a temporary decrease in leverage compared to the surrounding years.
Overall, the decreasing trend in the debt-to-equity ratio from 2022 to 2023 reflects a positive financial position for Franklin Electric Co., Inc. as it signifies a lower proportion of debt relative to equity, potentially indicating stronger financial health and reduced risk associated with high levels of debt.
Peer comparison
Dec 31, 2023