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Hubbell Inc. (NYSE:HUBB)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Common-Size Income Statement

Hubbell Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -70.26 -72.54 -71.11 -70.54 -70.98
Gross profit 29.74% 27.46% 28.89% 29.46% 29.02%
Selling & administrative expenses -15.41 -14.76 -16.16 -16.47 -16.59
Operating income 14.33% 12.69% 12.73% 12.99% 12.43%
Gain (loss) on disposition of business 0.00 -0.16 0.00 0.47 0.00
Loss on extinguishment of debt 0.00 -0.40 0.00 0.00 0.00
Pension charge -0.14 0.00 -0.18 -0.19 0.00
Interest expense, net -1.00 -1.30 -1.44 -1.51 -1.62
Investment income 0.00 0.00 0.00 0.03 0.00
Other income (expense), net 0.09 0.13 -0.28 -0.47 -0.39
Other expense -1.05% -1.74% -1.90% -1.66% -2.01%
Income from continuing operations before income taxes 13.28% 10.95% 10.83% 11.34% 10.42%
Provision for income taxes -2.83 -2.10 -2.33 -2.46 -2.25
Net income from continuing operations 10.44% 8.85% 8.50% 8.87% 8.17%
Income from discontinued operations, net of tax 0.70 0.82 0.00 0.00 0.00
Net income 11.14% 9.67% 8.50% 8.87% 8.17%
Net income attributable to noncontrolling interest -0.11 -0.15 -0.11 -0.14 -0.13
Net income attributable to Hubbell Incorporated 11.03% 9.53% 8.39% 8.73% 8.04%

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).

The common-size income statement analysis from 2018 to 2022 reveals a consistent upward trend in overall profitability and operational efficiency. Net income attributable to the company grew from 8.04% of net sales in 2018 to 11.03% in 2022, driven by a combination of improved operating margins and reduced non-operating expenses.

Gross Profitability and Cost Management
Cost of goods sold remained relatively stable, fluctuating between 70.26% and 72.54% of net sales. A peak in costs occurred in 2021 at 72.54%, which resulted in a corresponding dip in gross profit to 27.46%. However, a recovery was observed in 2022, where the cost of goods sold dropped to its lowest level in the period (70.26%), pushing the gross profit margin to its highest point of 29.74%.
Operating Efficiency
Selling and administrative expenses exhibited a general downward trend over the five-year period, decreasing from 16.59% of net sales in 2018 to 15.41% in 2022. This reduction in overhead contributed to the expansion of the operating income margin, which rose from 12.43% in 2018 to 14.33% in 2022, indicating improved scalability of operations.
Non-Operating Expenses and Financial Leverage
A steady reduction in interest expense, net is observed, falling from 1.62% of net sales in 2018 to 1.00% in 2022. Other expenses also showed significant improvement, declining from 2.01% in 2018 to 1.05% in 2022. These trends suggest a reduction in the relative cost of debt and a more efficient management of non-core expenditures.
Net Income and Other Impacts
Income from continuing operations before taxes increased from 10.42% in 2018 to 13.28% in 2022. The total net income was further bolstered starting in 2021 by contributions from discontinued operations, which added 0.82% and 0.70% to the net margin in 2021 and 2022, respectively. After accounting for taxes and noncontrolling interests, the net income attributable to the parent company achieved a consistent growth trajectory, ending the period at 11.03%.

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