Franklin Electric Co Inc (FELE)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,728,100 | 1,725,300 | 1,803,080 | 1,803,450 | 1,694,200 | 1,715,000 | 1,751,540 | 1,683,200 | 1,575,200 | 1,546,000 | 1,510,800 | 1,281,680 | 1,272,300 | 1,201,440 | 1,151,330 | 1,149,530 | 1,194,700 | 1,236,940 | 1,269,660 | 1,228,800 |
| 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 |
| Financial leverage ratio | 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 | 1.50 | 1.60 | 1.67 | 1.67 |
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 been fluctuating over the past eight quarters, ranging from 1.43 to 1.78. The ratio indicates the company's level of financial leverage or the extent to which it relies on debt financing. A higher ratio suggests higher financial risk as the company has more debt relative to its equity.
In this case, the trend shows an increasing financial leverage ratio over the quarters, peaking at 1.78 in Q2 2022 and then slightly decreasing in the subsequent quarters. This suggests that the company has been gradually relying more on debt to finance its operations, which could potentially increase its financial risk and interest payments.
It would be important for stakeholders to closely monitor Franklin Electric Co., Inc.'s leverage ratio and assess the company's ability to manage its debt levels effectively to ensure its long-term financial stability.
Peer comparison
Dec 31, 2023