Franklin Electric Co Inc (FELE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided solvency ratios of Franklin Electric Co., Inc., the company's solvency position can be analyzed as follows:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. The decreasing trend from Q1 2023 to Q4 2023, with fluctuations in between, indicates that Franklin Electric has been effectively managing its debt levels in relation to its total assets.
2. Debt-to-capital ratio: This ratio shows the percentage of a company's capital that is financed through debt. Similar to the debt-to-assets ratio, Franklin Electric has shown a decreasing trend in the debt-to-capital ratio across the quarters, indicating a positive sign of reducing reliance on debt in its capital structure.
3. Debt-to-equity ratio: This ratio reflects the proportion of a company's financing that comes from debt compared to equity. The downward trend observed in this ratio from Q1 2023 to Q4 2023 indicates that the company has been gradually decreasing its debt relative to its equity, which may imply a strengthening financial position.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company has utilized debt in its capital structure. Franklin Electric's decreasing trend in this ratio over the quarters suggests that the company has been reducing its reliance on debt financing, which can be considered a positive sign of improving solvency and financial stability.
Overall, based on the trends observed in these solvency ratios, Franklin Electric Co., Inc. appears to have been taking steps to manage its debt levels, improve its capital structure, and enhance its overall solvency position during the quarters analyzed. This may indicate a more sustainable financial position and reduced financial risk for the company.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratio trend of Franklin Electric Co., Inc. over the past eight quarters reveals a generally positive performance. The company consistently maintained a healthy interest coverage ratio, ranging from 18.75 to 35.10.
In Q1 and Q2 of 2022, Franklin Electric Co., Inc. demonstrated its strongest interest coverage ratio, with values of 35.10 and 31.50, respectively. This indicates that the company had a significant cushion to cover its interest expenses during these periods.
Although there was a slight decline in the interest coverage ratio in subsequent quarters, with figures ranging between 18.75 and 22.50, the ratios remained well above 1, reflecting a financially stable position.
Overall, the interest coverage ratio analysis suggests that Franklin Electric Co., Inc. effectively managed its interest obligations and generated sufficient earnings to cover its interest expenses throughout the examined periods.