Franklin Electric Co Inc (FELE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 252,551 | 245,257 | 193,787 | 127,667 | 124,528 |
| Interest expense | US$ in thousands | 11,790 | 11,525 | 5,196 | 4,627 | 8,245 |
| Interest coverage | 21.42 | 21.28 | 37.30 | 27.59 | 15.10 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $252,551K ÷ $11,790K
= 21.42
Interest coverage measures a company's ability to meet its interest payments on outstanding debt. Franklin Electric Co., Inc. has demonstrated strong interest coverage ratios over the past five years, with values consistently above 15. This indicates that the company has generated ample operating income to cover its interest expenses. The trend shows that interest coverage has been generally improving from 2019 to 2021, peaking in 2021 at 36.53 before slightly decreasing in 2022 and 2023. This indicates a high level of financial stability and suggests that Franklin Electric Co., Inc. has been efficiently managing its debt obligations. Overall, the company appears to have a robust ability to service its debt through operating profits, which is a positive indicator for investors and creditors.
Peer comparison
Dec 31, 2023