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Franklin Electric Co (Franklin Electric Co) Operating Income : $259 Mil (TTM As of Mar. 2024)


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What is Franklin Electric Co Operating Income?

Franklin Electric Co's Operating Income for the three months ended in Mar. 2024 was $48 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $259 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Franklin Electric Co's Operating Income for the three months ended in Mar. 2024 was $48 Mil. Franklin Electric Co's Revenue for the three months ended in Mar. 2024 was $461 Mil. Therefore, Franklin Electric Co's Operating Margin % for the quarter that ended in Mar. 2024 was 10.40%.

Good Sign:

Franklin Electric Co Inc operating margin is expanding. Margin expansion is usually a good sign.

Franklin Electric Co's 5-Year average Growth Rate for Operating Margin % was 5.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Franklin Electric Co's annualized ROC % for the quarter that ended in Mar. 2024 was 10.36%. Franklin Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 21.24%.


Franklin Electric Co Operating Income Historical Data

The historical data trend for Franklin Electric Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Franklin Electric Co Operating Income Chart

Franklin Electric Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 129.65 133.02 189.81 259.36 263.53

Franklin Electric Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.73 81.05 78.57 51.18 47.94

Franklin Electric Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $259 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Franklin Electric Co  (NAS:FELE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Franklin Electric Co's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=191.744 * ( 1 - 21.79% )/( (1428.34 + 1465.767)/ 2 )
=149.9629824/1447.0535
=10.36 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1728.122 - 214.819 - ( 84.963 - max(0, 287.039 - 853.795+84.963))
=1428.34

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1773.107 - 242.026 - ( 65.314 - max(0, 316.248 - 901.363+65.314))
=1465.767

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Franklin Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=175.048/( ( (286.753 + max(511.464, 0)) + (288.122 + max(562.233, 0)) )/ 2 )
=175.048/( ( 798.217 + 850.355 )/ 2 )
=175.048/824.286
=21.24 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(222.418 + 508.696 + 37.718) - (214.819 + 0 + 42.549)
=511.464

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(262.632 + 532.242 + 41.175) - (242.026 + 0 + 31.79)
=562.233

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Franklin Electric Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=47.936/460.9
=10.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Franklin Electric Co Operating Income Related Terms

Thank you for viewing the detailed overview of Franklin Electric Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Franklin Electric Co (Franklin Electric Co) Business Description

Traded in Other Exchanges
Address
9255 Coverdale Road, Fort Wayne, IN, USA, 46809
Franklin Electric Co Inc designs, manufactures, and distributes water and fuel pumping systems, composed of submersible motors, pumps, electronic controls, water treatment systems, and related parts and equipment. It has three segments; The Water Systems segment designs, manufactures and sells motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater, The Fueling Systems segment designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in fueling system applications and the Distribution segment sells and provides presale support and specifications to the installing contractors.
Executives
Gregg C Sengstack officer: Senior Vice President and CFO FRANKLIN ELECTRIC CO INC, 9255 COVERDALE RD, FORT WAYNE IN 46809
Delancey W Davis officer: Vice President, Director of Sa FRANKLIN ELECTRIC CO., INC., 9255 COVERDALE RD, FORT WAYNE IN 46809
Greg Michael Levine officer: VP & President, Global Water 954 CHAPEL OAKS ROAD, FRONTENAC MO 63131
Jonathan M. Grandon officer: Chief Administrative Officer 56 EAST BELL DRIVE, P.O. BOX, WARSAW IN 46581
Donald P Kenney officer: VP and President Energy System FRANKLIN ELECTRIC CO., INC., 9255 COVERDALE RD, FORT WAYNE IN 46809
Paul Chhabra officer: VP, Global Product Supply 9255 COVERDALE ROAD, FORT WAYNE IN 46809
Jeffery L Taylor officer: Vice President and CFO 1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905
Chris Villavarayan director C/O MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Brent L Spikes officer: VP, Global Manufacturing Ops 10330 CYGNET COVE, ROANOKE IN 46783
Kenneth Keene officer: VP, Global Supply Chain 626 MONTE VISTA DRIVE, FORT WAYNE IN 46814
John J Haines officer: Vice President and CFO FRANKLIN ELECTRIC CO., INC., 9255 COVERDALE RD, FORT WAYNE IN 46809
Luxfer Holdings Plc director LUMNS LANE, MANCHESTER X0 M27 8LN
Alok Maskara director 2140 LAKE PARK BLVD, RICHARDSON TX 75080
Jay J Walsh officer: President, Franklin Fueling 502 CABRILLO COURT, VERONA WI 53593
Julie Scheck Freigang officer: Vice President 515 FRANKLIN STREET, MICHIGAN CITY IN 46360