Franklin Electric Co Inc (FELE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,728,100 | 1,694,200 | 1,575,200 | 1,272,300 | 1,194,700 |
| Total stockholders’ equity | US$ in thousands | 1,206,720 | 1,067,860 | 946,501 | 847,833 | 796,545 |
| Financial leverage ratio | 1.43 | 1.59 | 1.66 | 1.50 | 1.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,728,100K ÷ $1,206,720K
= 1.43
The financial leverage ratio of Franklin Electric Co., Inc. has shown fluctuations over the past five years. The ratio decreased from 1.50 in 2019 and 2020 to 1.43 in 2023, indicating a potentially more conservative capital structure during the most recent year. This suggests that the company may be relying less on debt financing and more on equity to fund its operations and investments.
However, it is important to note that the ratio increased in 2022 to 1.59 and peaked at 1.66 in 2021. These higher ratios suggest that Franklin Electric Co., Inc. was more leveraged in those years, potentially taking on more debt relative to equity.
Overall, the decreasing trend in the financial leverage ratio from 2021 to 2023 may indicate a shift towards a more balanced capital structure with a reduced reliance on debt financing. It would be important to further explore the reasons behind these changes in order to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2023