Hubbell Inc. (NYSE:HUBB)

Total Asset Turnover

The reported total asset turnover ratio exhibited a declining trend from 0.92 in 2018 to a low of 0.79 in 2021, before rising back to 0.92 in 2022. Similarly, the adjusted total asset turnover followed this pattern, decreasing from 0.89 in 2018 to 0.77 in 2021 and then increasing to 0.89 in 2022. This indicates a reduction in asset efficiency during the mid-period, with recovery observed in the most recent year.

Current Ratio

The reported current ratio decreased gradually from 1.96 in 2018 to 1.67 in 2020, then showed a modest recovery to 1.86 by 2022. The adjusted current ratio mirrored this movement, starting at 2.22 in 2018, declining to 1.90 in 2020, and rising to 2.17 in 2022. These figures suggest a temporary weakening in short-term liquidity followed by improvement.

Debt to Equity Ratio

A consistent downward trend is observed in both reported and adjusted debt to equity ratios. Reported debt to equity dropped from 1.01 in 2018 to 0.61 in 2022, while the adjusted ratio declined from 0.88 to 0.56 over the same period. This implies a reduction in reliance on debt financing relative to equity.

Debt to Capital Ratio

The reported debt to capital ratio steadily decreased from 0.50 in 2018 to 0.38 in 2022, with the adjusted ratio showing a similar decline from 0.47 to 0.36. This trend aligns with the decreasing debt to equity, reflecting a lower proportion of debt within the capital structure.

Financial Leverage

Financial leverage, as reported, declined from 2.74 in 2018 to 2.29 in 2022, with the adjusted leverage showing a comparable reduction from 2.36 to 2.01. This reflects a gradual decrease in the extent to which assets are financed by debt, indicating a more conservative capital structure over time.

Net Profit Margin

The reported net profit margin generally improved, starting at 8.04% in 2018, dipping slightly in 2020 to 8.39%, and rising to a peak of 11.03% in 2022. The adjusted net profit margin exhibited more variability, with a high of 11.47% in 2018, which decreased to around 8.5% in 2019-2020, before increasing to 10.88% in 2022. Overall, profitability enhanced in the later years.

Return on Equity (ROE)

The reported ROE dropped from 20.23% in 2018 to a low of 16.97% in 2020, then increased significantly to 23.12% in 2022. The adjusted ROE followed a similar pattern, declining to 14.64% in 2020 and recovering to 19.47% by 2022. This indicates an improved capacity to generate income from shareholders’ equity in the most recent period.

Return on Assets (ROA)

The reported ROA showed a decline from 7.39% in 2018 to 6.91% in 2020, followed by a steady increase to 10.10% in 2022. The adjusted ROA moved from 10.21% in 2018 down to 6.89% in 2020 and then rose to 9.67% in 2022. This pattern reflects better asset utilization and profitability toward the end of the period.

Net Sales

The net sales demonstrate a fluctuating trend over the five-year period. Starting at approximately 4.48 billion USD in 2018, there was a slight increase in 2019, followed by a noticeable decline in 2020 and 2021. However, in 2022, net sales rose significantly, surpassing the 2018 figure and reaching nearly 4.95 billion USD.

Total Assets

Total assets showed a steady upward trend from 2018 through 2022. Beginning at about 4.87 billion USD in 2018, assets increased each year, reaching approximately 5.4 billion USD by the end of 2022, indicating ongoing asset growth and potential investment or accumulation of resources.

Reported Total Asset Turnover

The reported total asset turnover ratio indicates a declining efficiency in asset use from 2018 to 2021, moving from 0.92 to a low of 0.79. In 2022, there was a recovery in turnover efficiency, rising back to 0.92, equating the ratio observed at the start of the period.

Adjusted Net Sales

The adjusted net sales closely mirror the net sales trends with slight variations in values. Like the reported net sales, adjusted net sales peaked in 2019, declined through 2021, and then increased sharply in 2022, reaching its highest level in the timeframe under review.

Adjusted Total Assets

Adjusted total assets follow a pattern similar to reported total assets, albeit at slightly different values. The upward trajectory persists throughout the five years, with adjusted assets growing from just over 5 billion USD in 2018 to nearly 5.6 billion USD in 2022, suggesting consistent asset base expansion under adjusted measures.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio exhibits a pattern consistent with the reported ratio. It declines from 0.89 in 2018 to 0.77 in 2021, indicating reduced efficiency in asset utilization. However, a noticeable improvement occurs in 2022, where the ratio climbs back to 0.89, approaching the level observed at the beginning of the period.

Current Assets

The current assets exhibit a generally increasing trend over the five-year period. Starting from $1,643,700 thousand in 2018, there is a slight dip in 2019 to $1,574,200 thousand, followed by incremental growth in subsequent years, reaching $2,021,400 thousand by the end of 2022. This indicates improving liquidity in terms of asset holdings.

Current Liabilities

Current liabilities have consistently increased each year, from $839,300 thousand in 2018 to $1,088,500 thousand in 2022. The steady rise suggests growing short-term obligations, which may be reflective of increased operational scale or financing needs.

Reported Current Ratio

The reported current ratio exhibits a downward trend from 1.96 in 2018 to a low of 1.67 in 2020, before improving back to 1.86 in 2022. Despite fluctuations, the ratio remains above 1.5 throughout, indicating the company maintains a margin of safety in meeting short-term liabilities, though with some variability in liquidity strength over the years.

Adjusted Current Assets

Adjusted current assets show a pattern similar to the reported current assets but at higher absolute values, starting at $1,730,300 thousand in 2018 and rising steadily to $2,222,700 thousand in 2022. This upward progression points to improved liquidity when adjusted for specific considerations, possibly excluding less liquid items.

Adjusted Current Liabilities

Adjusted current liabilities also rise consistently from $778,100 thousand in 2018 to $1,022,500 thousand in 2022. The increments are more moderate compared to the unadjusted current liabilities, indicating that certain liabilities have been excluded in this adjustment, possibly non-operational or non-current obligations temporarily classified as current.

Adjusted Current Ratio

The adjusted current ratio shows a decline from 2.22 in 2018 to 1.90 in 2020, followed by a recovery to 2.17 in 2022. This trend mirrors the reported current ratio but at higher levels, reflecting stronger liquidity positioning after adjustments. The ratio maintains a level above 1.9 for most years, indicating good short-term financial health under the adjusted framework.

Summary Insights

Overall, the company’s liquidity position demonstrates resilience with both reported and adjusted current ratios remaining comfortably above 1.5, signaling sufficient current assets to cover liabilities. The adjustments increase perceived liquidity, suggesting some conservative measures in the reported figures. The decline in liquidity ratios around 2020 may correspond to external disruptions but shows recovery thereafter. Continuous growth in both current assets and liabilities highlights expanding operational activities but does not appear to threaten liquidity adequacy as of 2022.

The financial data reveals several notable trends in the company's capital structure over the five-year period from 2018 to 2022. Both total debt and shareholders' equity have demonstrated distinct movements affecting leverage ratios.

Total Debt

The absolute level of total debt decreased from $1,793,200 thousand in 2018 to $1,442,600 thousand in 2022. This represents a gradual reduction over the period, with an intermediate slight rebound in 2020 before continuing the downward trend through 2022.

Shareholders' Equity

Total shareholders' equity exhibited a steady increase from $1,780,600 thousand in 2018 to $2,360,900 thousand by the end of 2022. This consistent growth signals an expanding equity base, which may contribute to greater financial stability and reduced reliance on debt financing.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined significantly from 1.01 in 2018 to 0.61 in 2022. This downward trajectory reflects the combined effect of decreasing total debt and increasing equity, indicating a conservative shift in capital structure toward lower leverage.

Adjusted Debt and Equity

Adjusted total debt largely followed the same pattern as reported debt, declining from $1,892,035 thousand in 2018 to $1,558,000 thousand in 2022. Likewise, adjusted total equity increased consistently from $2,140,500 thousand to $2,780,100 thousand over the same timeframe, mirroring the growth seen in reported equity but on a relatively larger scale.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio also shows a marked decline from 0.88 in 2018 to 0.56 in 2022. This points to a strengthening equity position relative to debt, reinforcing the overall trend toward reduced leverage and increased financial solidity.

Overall, the data indicates a strategic movement toward reducing debt levels while simultaneously growing equity. The consistent decrease in both reported and adjusted debt to equity ratios highlights an intentional deleveraging process or increased reliance on equity financing. This trend may improve the company's risk profile and provide a stronger foundation for future growth or financial flexibility.

Total Debt

The total debt shows a declining trend over the five-year period. Starting at 1,793,200 thousand US dollars in 2018, it decreased to 1,442,600 thousand US dollars by the end of 2022. This represents a gradual reduction in leverage at the nominal debt level.

Total Capital

Total capital experienced a slight increase overall. Beginning at 3,573,800 thousand US dollars in 2018, it increased steadily to 3,803,500 thousand US dollars in 2022. This indicates a growing capital base alongside the decreasing debt.

Reported Debt to Capital Ratio

The reported debt to capital ratio consistently declined each year, moving from 0.50 in 2018 to 0.38 in 2022. This trend points to an improvement in the overall capital structure, with debt forming a smaller portion relative to total capital.

Adjusted Total Debt

The adjusted total debt follows a trend similar to the reported total debt, beginning at 1,892,035 thousand US dollars in 2018 and decreasing to 1,558,000 thousand US dollars in 2022. The adjustment appears to result in slightly higher debt figures compared to reported numbers, but the overall downward trend remains clear.

Adjusted Total Capital

Adjusted total capital also increased during the period, starting at 4,032,535 thousand US dollars in 2018 and growing to 4,338,100 thousand US dollars by 2022. This reflects a consistent expansion of the capital base when adjusted for specific factors.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio steadily decreased from 0.47 in 2018 to 0.36 in 2022. This reduction aligns with the trend observed in the reported ratio, reinforcing the observation of improved financial leverage when considering adjusted figures.

Overall Insight

The data indicates a deliberate effort to reduce leverage over the five-year span, with both reported and adjusted debt to capital ratios declining. While capital levels have moderately increased, debt levels have decreased or remained stable. This suggests enhanced financial stability and potentially a more conservative approach to debt management.

Total Assets

Total assets demonstrate a consistent upward trend, increasing from approximately $4.87 billion in 2018 to about $5.40 billion in 2022. This steady growth indicates ongoing asset accumulation over the analyzed period.

Total Shareholders’ Equity

Shareholders’ equity also shows a clear and steady increase, rising from $1.78 billion in 2018 to $2.36 billion in 2022. This suggests continual reinvestment or retained earnings accumulated over time, contributing to the company’s net worth.

Reported Financial Leverage

The reported financial leverage ratio steadily declines from 2.74 in 2018 to 2.29 in 2022. This decreasing ratio implies a reduction in reliance on debt financing relative to equity, indicating a strengthening equity position or lower leverage usage.

Adjusted Total Assets

The adjusted total assets reflect a generally increasing trend, rising from about $5.05 billion in 2018 to nearly $5.60 billion in 2022. While there is a slight decline noted between 2018 and 2019, the overall pattern shows asset growth when adjustments are considered.

Adjusted Total Equity

Adjusted total equity consistently increases from $2.14 billion in 2018 to $2.78 billion in 2022. This growth mirrors that of the reported equity, reinforcing the view of strengthening financial foundation after adjustments.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreases from 2.36 in 2018 to 2.01 in 2022, following a steady downward trajectory. This suggests a decreasing proportion of debt relative to adjusted equity, further indicating improved financial stability and reduced risk from a leverage perspective.

Summary

Overall, the data reveal positive growth in both assets and equity over the five-year span, accompanied by a gradual reduction in financial leverage ratios. These trends highlight a strengthening equity base and a cautious approach to debt, suggesting a financially conservativ strategy aimed at enhancing stability and lowering financial risk.

Net Income Attributable to Hubbell Incorporated

The net income exhibited fluctuations over the observed period. Starting at 360,200 thousand USD in 2018, it increased to 400,900 thousand USD in 2019, followed by a decrease in 2020 to 351,200 thousand USD. Subsequently, it rose again reaching 399,500 thousand USD in 2021 and peaked at 545,900 thousand USD in 2022, reflecting a significant growth in the latest year.

Net Sales

Net sales showed a relatively stable trend with some variability. Beginning at 4,481,700 thousand USD in 2018, net sales increased slightly to 4,591,000 thousand USD in 2019. There was a decrease in 2020 to 4,186,000 thousand USD and a marginal increase to 4,194,100 thousand USD in 2021. In 2022, net sales increased substantially to 4,947,900 thousand USD, indicating a notable rebound and growth.

Reported Net Profit Margin

The reported net profit margin showed an overall upward trajectory. Starting at 8.04% in 2018, it rose to 8.73% in 2019. Although it slightly declined to 8.39% in 2020, the margin increased significantly to 9.53% in 2021 and further rose to 11.03% in 2022, demonstrating improved profitability relative to sales.

Adjusted Net Income

Adjusted net income displays a mixed trend with some volatility. It began at 515,900 thousand USD in 2018, then fell markedly to 396,300 thousand USD in 2019 and continued to decline to 356,800 thousand USD in 2020. A recovery occurred in 2021 with adjusted net income increasing to 411,800 thousand USD, followed by a strong rise to 541,300 thousand USD in 2022, surpassing the initial 2018 figure.

Adjusted Net Sales

Adjusted net sales mirrored the unadjusted net sales pattern with minor fluctuations. The figure increased slightly from 4,499,200 thousand USD in 2018 to 4,594,300 thousand USD in 2019, before decreasing to 4,185,900 thousand USD in 2020 and 4,181,000 thousand USD in 2021. A notable increase to 4,977,000 thousand USD occurred in 2022, indicating strong sales growth in that year.

Adjusted Net Profit Margin

Adjusted net profit margin showed inconsistency in the earlier years but an improving trend overall. It started at 11.47% in 2018 but dropped sharply to 8.63% in 2019 and remained relatively stable at 8.52% in 2020. Thereafter, the margin rose to 9.85% in 2021 and further improved to 10.88% in 2022, indicating better profitability from an adjusted standpoint.

Net Income Attributable to Hubbell Incorporated

The net income demonstrates fluctuations over the analyzed periods, starting at $360.2 million in 2018 and reaching a peak of $545.9 million in 2022. There is a noticeable dip in 2020 to approximately $351.2 million, followed by a steady recovery and increase through 2021 and 2022.

Total Hubbell Incorporated Shareholders’ Equity

Shareholders’ equity shows consistent growth throughout the periods, rising from about $1.78 billion in 2018 to approximately $2.36 billion by the end of 2022, indicating a strengthening capital base.

Reported Return on Equity (ROE)

The reported ROE fluctuates with a high of 23.12% in 2022 and a low of 16.97% in 2020. The trend indicates a decline from 2018 to 2020 followed by a rebound scenario, culminating in the highest return on equity in 2022.

Adjusted Net Income

The adjusted net income decreases considerably from $515.9 million in 2018 to $356.8 million in 2020, then recovers gradually, reaching $541.3 million in 2022. This pattern mirrors the trend in reported net income but starts from a higher base and ends with a higher value in 2022.

Adjusted Total Equity

Adjusted equity exhibits a steady increase across the periods, growing from approximately $2.14 billion in 2018 to about $2.78 billion in 2022. This growth supports the company's equity strength on an adjusted basis.

Adjusted Return on Equity (ROE)

The adjusted ROE declines from a high of 24.1% in 2018 to a low of 14.64% in 2020, followed by a gradual increase through 2021 and 2022 to 19.47%. Despite recovery, the adjusted ROE remains lower than the initial figure in 2018, indicating a slightly weaker efficiency in generating adjusted profits from equity compared to the start of the period.

Net Income Attributable to Hubbell Incorporated

The net income showed an overall increasing trend from 2018 to 2022, starting at $360.2 million in 2018 and reaching $545.9 million in 2022. There was a slight dip in 2020, decreasing to $351.2 million from $400.9 million in 2019, followed by a recovery in 2021 to $399.5 million and a significant increase in 2022.

Total Assets

Total assets exhibited steady growth over the five-year period, rising from approximately $4.87 billion in 2018 to $5.40 billion in 2022. The increase was consistent each year without any declines.

Reported Return on Assets (ROA)

The reported ROA showed fluctuations but an overall upward trend. It increased from 7.39% in 2018 to a peak of 8.18% in 2019, then decreased to 6.91% in 2020. It rose again to 7.56% in 2021, followed by a notable increase to 10.1% in 2022, indicating improved profitability relative to assets in the latest year.

Adjusted Net Income

Adjusted net income followed a similar pattern to the reported net income but showed more volatility. Starting relatively high at $515.9 million in 2018, it sharply declined to $396.3 million in 2019 and then further to $356.8 million in 2020. Thereafter, it increased in 2021 to $411.8 million and rose substantially in 2022 to $541.3 million, surpassing previous years.

Adjusted Total Assets

The adjusted total assets grew steadily across the period, from approximately $5.05 billion in 2018 to $5.60 billion in 2022. The growth was consistent year over year, reflecting a stable expansion of asset base on an adjusted basis.

Adjusted Return on Assets (ROA)

The adjusted ROA demonstrated a declining trend from 10.21% in 2018 to 6.89% in 2020, indicating reduced efficiency in asset utilization during this period. It slightly recovered to 7.59% in 2021, followed by a marked improvement to 9.67% in 2022, signaling a restoration of profitability relative to adjusted assets.