Franklin Electric Co Inc (FELE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,820,610,000 | 1,728,120 | 1,694,200 | 1,575,160 | 1,272,310 |
| Total stockholders’ equity | US$ in thousands | 1,266,100,000 | 1,206,720 | 1,067,910 | 946,482 | 847,833 |
| Financial leverage ratio | 1.44 | 1.43 | 1.59 | 1.66 | 1.50 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,820,610,000K ÷ $1,266,100,000K
= 1.44
The financial leverage ratio of Franklin Electric Co Inc has shown some fluctuations over the past five years. It increased from 1.50 in 2020 to 1.66 in 2021, indicating a higher level of financial leverage. However, in the subsequent years, the ratio decreased to 1.59 in 2022, 1.43 in 2023, and 1.44 in 2024.
This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk for the company as it indicates a smaller proportion of debt in its capital structure relative to equity. Overall, Franklin Electric Co Inc's trend in financial leverage ratio over the years suggests a more conservative approach to capital structure management.
Peer comparison
Dec 31, 2024