Analysis of Debt
Total Debt (Carrying Amount)
Hubbell Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Total debt (carrying amount) exhibited a general downward trajectory over the five-year period ending December 31, 2022. The total obligation decreased from $1,793.2 million in 2018 to $1,442.6 million in 2022, representing an overall reduction of approximately 19.6%.
- Long-term Debt Profile
- Long-term debt, excluding the current portion, constitutes the vast majority of the total debt obligations. A notable reduction occurred between 2018 and 2020, during which the balance fell from $1,737.1 million to $1,436.9 million. Following 2020, the long-term debt balance remained highly stable, fluctuating minimally between $1,435.5 million and $1,437.9 million through the end of 2022.
- Short-term Debt and Current Portion Volatility
- Short-term obligations experienced significant volatility during the analyzed period. After relatively stable levels in 2018 and 2019, there was a sharp increase in 2020, with short-term debt and the current portion of long-term debt peaking at $153.1 million. This peak was followed by a rapid decline in 2021 and 2022, with the balance falling to $9.7 million and $4.7 million respectively, indicating a substantial reduction in immediate liquidity pressures or a strategic refinancing of short-term liabilities.
- Aggregate Debt Trajectory
- The total debt carrying amount reflects the combined effect of structural long-term debt reduction and the elimination of short-term spikes. While total debt experienced a marginal increase in 2020 due to the surge in short-term liabilities, the overarching trend is one of deleveraging, with the company ending the period at its lowest total debt level since 2018.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Short-term debt | 4,700) |
| Long-term debt | 1,306,500) |
| Total debt (fair value) | 1,311,200) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.91 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.14%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.35% | 397,900) | 13,330) | |
| 3.15% | 297,500) | 9,371) | |
| 3.50% | 446,200) | 15,617) | |
| 2.30% | 296,300) | 6,815) | |
| 2.57% | 4,700) | 121) | |
| Total | 1,442,600) | 45,254) | |
| 3.14% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 45,254 ÷ 1,442,600 = 3.14%