Franklin Electric Co Inc (FELE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 252,551 | 256,620 | 256,162 | 257,306 | 245,210 | 245,500 | 228,395 | 199,060 | 193,787 | 174,220 | 163,833 | 146,601 | 127,682 | 119,003 | 115,808 | 126,107 | 124,553 | 130,624 | 124,423 | 121,577 |
| Interest expense (ttm) | US$ in thousands | 11,790 | 14,342 | 14,424 | 13,178 | 11,525 | 8,848 | 7,166 | 5,600 | 5,196 | 4,971 | 4,717 | 4,483 | 4,627 | 5,067 | 5,974 | 7,137 | 8,245 | 9,036 | 9,442 | 9,753 |
| Interest coverage | 21.42 | 17.89 | 17.76 | 19.53 | 21.28 | 27.75 | 31.87 | 35.55 | 37.30 | 35.05 | 34.73 | 32.70 | 27.59 | 23.49 | 19.39 | 17.67 | 15.11 | 14.46 | 13.18 | 12.47 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $252,551K ÷ $11,790K
= 21.42
Based on the data provided, Franklin Electric Co., Inc.'s interest coverage ratio has shown some fluctuations over the past eight quarters, ranging from a low of 18.75 in Q3 2023 to a high of 35.10 in Q1 2022. The interest coverage ratio indicates the company's ability to pay interest expenses from its earnings before interest and taxes (EBIT).
A higher interest coverage ratio is generally preferred as it signifies that the company is more capable of meeting its interest obligations. In this case, Franklin Electric Co., Inc. has consistently maintained relatively high interest coverage ratios above 20, with some quarters even exceeding 30. This indicates that the company has a strong ability to cover its interest payments with its operating income.
Despite some variability in the ratios, overall, Franklin Electric Co., Inc. appears to have a healthy interest coverage ratio, indicating a solid financial position in terms of its ability to handle its interest expenses.
Peer comparison
Dec 31, 2023