Franklin Electric Co Inc (FELE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,820,610 | 1,807,240 | 1,784,350 | 1,773,110 | 1,728,120 | 1,725,300 | 1,803,080 | 1,803,450 | 1,694,200 | 1,715,010 | 1,751,540 | 1,683,190 | 1,575,160 | 1,545,980 | 1,510,840 | 1,281,680 | 1,272,310 | 1,201,440 | 1,151,330 | 1,149,530 |
| Total stockholders’ equity | US$ in thousands | 1,268,610 | 1,269,640 | 1,222,170 | 1,220,420 | 1,206,740 | 1,180,430 | 1,146,660 | 1,092,430 | 1,067,910 | 1,025,180 | 986,087 | 961,707 | 946,482 | 923,015 | 901,299 | 861,429 | 847,833 | 810,569 | 773,864 | 751,179 |
| Financial leverage ratio | 1.44 | 1.42 | 1.46 | 1.45 | 1.43 | 1.46 | 1.57 | 1.65 | 1.59 | 1.67 | 1.78 | 1.75 | 1.66 | 1.67 | 1.68 | 1.49 | 1.50 | 1.48 | 1.49 | 1.53 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,820,610K ÷ $1,268,610K
= 1.44
The financial leverage ratio of Franklin Electric Co Inc has shown some fluctuations over the past few years. The ratio, which measures the extent to which the company relies on debt to finance its operations, ranged from a low of 1.42 on September 30, 2024, to a high of 1.78 on June 30, 2022.
Overall, the company's financial leverage ratio has generally been within the range of 1.42 to 1.78, indicating a moderate level of debt usage compared to equity in its capital structure. A higher ratio suggests higher financial risk due to increased reliance on debt financing, while a lower ratio indicates a more conservative approach with less debt in the capital structure.
It is important for Franklin Electric Co Inc to carefully manage its financial leverage ratio to ensure it maintains a healthy balance between debt and equity, taking into consideration factors such as profitability, cash flow generation, and overall financial stability.
Peer comparison
Dec 31, 2024