Total Asset Turnover
since 2005
Calculation
Hubbell Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.92 | = | 4,947,900) | ÷ | 5,402,600) |
| Dec 31, 2021 | 0.79 | = | 4,194,100) | ÷ | 5,281,500) |
| Dec 31, 2020 | 0.82 | = | 4,186,000) | ÷ | 5,085,100) |
| Dec 31, 2019 | 0.94 | = | 4,591,000) | ÷ | 4,903,000) |
| Dec 31, 2018 | 0.92 | = | 4,481,700) | ÷ | 4,872,100) |
| Dec 31, 2017 | 0.99 | = | 3,668,800) | ÷ | 3,720,600) |
| Dec 31, 2016 | 0.99 | = | 3,505,200) | ÷ | 3,525,000) |
| Dec 31, 2015 | 1.06 | = | 3,390,400) | ÷ | 3,208,700) |
| Dec 31, 2014 | 1.01 | = | 3,359,400) | ÷ | 3,322,800) |
| Dec 31, 2013 | 1.00 | = | 3,183,900) | ÷ | 3,187,200) |
| Dec 31, 2012 | 1.03 | = | 3,044,400) | ÷ | 2,947,000) |
| Dec 31, 2011 | 1.01 | = | 2,871,600) | ÷ | 2,846,500) |
| Dec 31, 2010 | 0.94 | = | 2,541,200) | ÷ | 2,705,800) |
| Dec 31, 2009 | 0.96 | = | 2,355,600) | ÷ | 2,464,500) |
| Dec 31, 2008 | 1.28 | = | 2,704,400) | ÷ | 2,115,500) |
| Dec 31, 2007 | 1.36 | = | 2,533,900) | ÷ | 1,863,400) |
| Dec 31, 2006 | 1.38 | = | 2,414,300) | ÷ | 1,751,500) |
| Dec 31, 2005 | 1.26 | = | 2,104,900) | ÷ | 1,667,000) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory between 2005 and 2022 is characterized by a consistent expansion of both net sales and total assets, although the rate of growth for these two metrics has diverged over time, impacting overall asset efficiency.
- Revenue and Asset Expansion
- Net sales grew from approximately 2.1 billion USD in 2005 to nearly 4.9 billion USD by 2022. Concurrently, total assets expanded from 1.67 billion USD to 5.40 billion USD. While both metrics showed long-term upward trends, the growth in assets generally surpassed the growth in sales, leading to a gradual compression of the total asset turnover ratio.
- Asset Turnover Cycle Analysis
- The total asset turnover ratio exhibited three distinct phases. From 2005 to 2007, operational efficiency was at its highest, peaking at 1.38. A sharp decline occurred between 2008 and 2010, where the ratio dropped from 1.28 to 0.94, coinciding with a period where asset accumulation outpaced revenue generation.
- Stabilization and Recent Trends
- Between 2011 and 2017, the turnover ratio remained relatively stable, fluctuating narrowly around the 1.00 mark. However, a secondary decline is observed from 2018 onward, with the ratio reaching a period low of 0.79 in 2021. A partial recovery to 0.92 occurred in 2022, driven by a substantial increase in net sales that outpaced the growth in total assets for that specific year.
- Efficiency Implications
- The overall downward trend in total asset turnover suggests a diminishing capacity to generate sales from the asset base over the long term. The transition from a ratio of 1.26 in 2005 to 0.92 in 2022 indicates that the volume of sales generated per dollar of assets held has decreased, reflecting an increase in the capital intensity of the business operations.
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Comparison to Competitors
Hubbell Inc., total asset turnover, long-term trends, comparison to competitors
| Hubbell Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 0.92 | 0.49 | 0.69 | 0.59 | 0.39 | 0.57 | 1.25 | 0.42 |
| Dec 31, 2021 | 0.79 | 0.45 | 0.58 | 0.58 | 0.36 | 0.53 | 1.32 | 0.40 |
| Dec 31, 2020 | 0.82 | 0.38 | 0.50 | 0.56 | 0.29 | 0.51 | 1.29 | 0.35 |
| Dec 31, 2019 | 0.94 | 0.57 | 0.65 | 0.65 | 0.33 | 0.63 | 1.26 | 0.55 |
| Dec 31, 2018 | 0.92 | 0.86 | 0.66 | 0.70 | 0.37 | 0.72 | 1.20 | 0.50 |
| Dec 31, 2017 | 0.99 | 1.01 | 0.55 | 0.63 | 0.30 | 0.68 | 1.10 | 0.62 |
| Dec 31, 2016 | 0.99 | 1.05 | 0.48 | 0.65 | 0.30 | 0.73 | 0.99 | 0.64 |
| Dec 31, 2015 | 1.06 | 1.02 | 0.56 | 0.67 | 0.21 | 0.78 | 0.94 | 0.64 |
| Dec 31, 2014 | 1.01 | 0.91 | 0.62 | 0.67 | 0.16 | 0.89 | 1.23 | 0.71 |
| Dec 31, 2013 | 1.00 | 0.93 | 0.62 | 0.62 | 0.15 | 0.86 | 1.25 | 0.69 |
| Dec 31, 2012 | 1.03 | 0.92 | 0.71 | 0.46 | 0.15 | 0.90 | 1.22 | 0.65 |
| Dec 31, 2011 | 1.01 | 0.86 | 0.70 | 0.90 | 0.13 | 0.92 | 1.23 | 0.95 |
| Dec 31, 2010 | 0.94 | 0.94 | 0.62 | 0.79 | 0.13 | 0.88 | 1.31 | 0.93 |
| Dec 31, 2009 | 0.96 | 1.10 | 0.49 | 0.73 | 0.13 | 0.86 | 1.29 | 0.94 |
| Dec 31, 2008 | 1.28 | 1.13 | 0.71 | 0.92 | 0.14 | 1.03 | 1.28 | 1.03 |
| Dec 31, 2007 | 1.36 | 1.13 | 0.75 | 0.97 | 0.13 | 1.02 | 1.45 | 0.99 |
| Dec 31, 2006 | 1.38 | 1.19 | 0.76 | 1.08 | 0.14 | 1.01 | 1.40 | 1.00 |
| Dec 31, 2005 | 1.26 | 0.91 | 0.72 | 1.09 | 0.14 | 0.86 | 1.34 | 0.92 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Hubbell Inc., total asset turnover, long-term trends, comparison to sector (capital goods)
| Hubbell Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 0.92 | 0.54 |
| Dec 31, 2021 | 0.79 | 0.50 |
| Dec 31, 2020 | 0.82 | 0.43 |
| Dec 31, 2019 | 0.94 | 0.54 |
| Dec 31, 2018 | 0.92 | 0.58 |
| Dec 31, 2017 | 0.99 | 0.54 |
| Dec 31, 2016 | 0.99 | 0.54 |
| Dec 31, 2015 | 1.06 | 0.46 |
| Dec 31, 2014 | 1.01 | 0.41 |
| Dec 31, 2013 | 1.00 | 0.39 |
| Dec 31, 2012 | 1.03 | 0.38 |
| Dec 31, 2011 | 1.01 | 0.36 |
| Dec 31, 2010 | 0.94 | 0.34 |
| Dec 31, 2009 | 0.96 | 0.33 |
| Dec 31, 2008 | 1.28 | 0.35 |
| Dec 31, 2007 | 1.36 | 0.34 |
| Dec 31, 2006 | 1.38 | 0.36 |
| Dec 31, 2005 | 1.26 | 0.33 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Hubbell Inc., total asset turnover, long-term trends, comparison to industry (industrials)
| Hubbell Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 0.92 | 0.66 |
| Dec 31, 2021 | 0.79 | 0.58 |
| Dec 31, 2020 | 0.82 | 0.50 |
| Dec 31, 2019 | 0.94 | 0.62 |
| Dec 31, 2018 | 0.92 | 0.67 |
| Dec 31, 2017 | 0.99 | 0.62 |
| Dec 31, 2016 | 0.99 | 0.61 |
| Dec 31, 2015 | 1.06 | 0.54 |
| Dec 31, 2014 | 1.01 | 0.49 |
| Dec 31, 2013 | 1.00 | 0.47 |
| Dec 31, 2012 | 1.03 | 0.46 |
| Dec 31, 2011 | 1.01 | 0.45 |
| Dec 31, 2010 | 0.94 | 0.41 |
| Dec 31, 2009 | 0.96 | 0.39 |
| Dec 31, 2008 | 1.28 | 0.43 |
| Dec 31, 2007 | 1.36 | 0.41 |
| Dec 31, 2006 | 1.38 | 0.43 |
| Dec 31, 2005 | 1.26 | 0.40 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).