Franklin Electric Co Inc (FELE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 235,218 | 243,728 | 246,193 | 248,755 | 255,964 | 264,474 | 268,005 | 272,069 | 260,076 | 254,021 | 232,839 | 200,246 | 194,902 | 174,853 | 163,131 | 146,357 | 129,717 | 125,113 | 121,311 | 132,539 |
| Interest expense (ttm) | US$ in thousands | 6,319 | 6,461 | 7,889 | 10,091 | 11,790 | 14,342 | 14,424 | 13,178 | 11,525 | 8,848 | 7,166 | 5,600 | 5,195 | 4,970 | 4,716 | 4,482 | 4,627 | 5,067 | 5,974 | 7,137 |
| Interest coverage | 37.22 | 37.72 | 31.21 | 24.65 | 21.71 | 18.44 | 18.58 | 20.65 | 22.57 | 28.71 | 32.49 | 35.76 | 37.52 | 35.18 | 34.59 | 32.65 | 28.03 | 24.69 | 20.31 | 18.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $235,218K ÷ $6,319K
= 37.22
The interest coverage ratio measures the ability of Franklin Electric Co Inc to meet its interest obligations from its operating income. The trend in Franklin Electric's interest coverage ratio shows a generally positive trajectory from March 2020 to December 2024.
The interest coverage ratio increased consistently from 18.57 in March 2020 to a peak of 37.52 in December 2021, demonstrating the company's improving ability to cover its interest expenses. However, there was a slight decline in the interest coverage ratio in the following periods, with fluctuations observed in the range of 18.44 to 37.72.
Overall, Franklin Electric Co Inc maintained a healthy interest coverage ratio above 1, indicating that the company generated sufficient earnings to cover its interest payments. While the ratio fluctuated in some periods, it generally remained at satisfactory levels, suggesting the company's ability to comfortably meet its interest obligations.
Peer comparison
Dec 31, 2024