Stock Analysis on Net

Hubbell Inc. (NYSE:HUBB)

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

Analysis of Solvency Ratios 
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

Hubbell Inc., solvency ratios (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Debt Ratios
Debt to equity 0.53 0.55 0.58 0.61 0.62 0.64 0.65 0.65 0.72 0.74 0.86 0.77 0.72 0.90 0.89 0.81 0.92 0.97 1.00 1.01 1.10 1.18 1.25
Debt to capital 0.35 0.35 0.37 0.38 0.38 0.39 0.39 0.39 0.42 0.43 0.46 0.43 0.42 0.47 0.47 0.45 0.48 0.49 0.50 0.50 0.52 0.54 0.56
Debt to assets 0.25 0.26 0.26 0.27 0.27 0.28 0.28 0.27 0.30 0.30 0.34 0.31 0.30 0.35 0.34 0.32 0.34 0.35 0.36 0.37 0.38 0.40 0.42
Financial leverage 2.11 2.15 2.22 2.29 2.30 2.32 2.34 2.37 2.42 2.43 2.54 2.46 2.42 2.58 2.59 2.52 2.67 2.74 2.75 2.74 2.85 2.95 2.99
Coverage Ratios
Interest coverage 25.23 21.06 17.42 14.25 13.19 11.75 10.44 9.40 8.82 8.73 8.44 8.52 8.60 8.81 8.80 8.50 8.25 7.74 7.74 7.45

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Debt to equity ratio
The debt to equity ratio exhibits a general declining trend over the entire period. Starting at 1.25 in March 2018, it gradually decreased through successive quarters, reaching 0.53 by September 2023. This steady reduction implies a gradual decrease in reliance on debt relative to shareholder equity, demonstrating improvements in the company's capital structure and a conservative approach toward leveraging over time.
Debt to capital ratio
This ratio similarly shows a downward trend from 0.56 in March 2018 to 0.35 in September 2023. The decrease is consistent across quarters, indicating a sustained reduction in debt proportion relative to total capital. This pattern reinforces the observations in the debt to equity ratio and suggests strengthening of the company's financial stability and reduced credit risk.
Debt to assets ratio
The debt to assets ratio decreases from 0.42 in March 2018 to 0.25 in September 2023. There are minor fluctuations, but the overall movement is clearly downward. This means that the company is financing a smaller portion of its asset base through debt, signifying improvements in asset funding and potentially enhancing solvency.
Financial leverage ratio
The financial leverage ratio declines steadily from 2.99 in March 2018 to 2.11 in September 2023. This decrease corresponds to a reduction in the use of debt relative to equity in financing assets. The consistent decrease demonstrates a gradual deleveraging and suggests a stronger equity base supporting the company's assets.
Interest coverage ratio
The interest coverage ratio begins appearing in December 2018 at 7.45 and reveals a strong upward trend thereafter. It advances from 7.45 to 25.23 by September 2023, reflecting a significant increase in the company’s ability to meet interest obligations from operating earnings. This marked improvement suggests enhanced earnings capacity, improved profitability, and reduced risk related to debt servicing.

Debt Ratios


Coverage Ratios


Debt to Equity

Hubbell Inc., debt to equity calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Short-term debt and current portion of long-term debt 3,300 1,800 4,700 4,700 4,000 5,800 7,800 9,700 128,900 137,600 360,800 153,100 21,900 145,200 106,700 65,400 35,900 54,200 77,300 56,100 130,300 91,100 177,500
Long-term debt, excluding current portion 1,439,700 1,439,100 1,438,500 1,437,900 1,437,300 1,436,700 1,436,100 1,435,500 1,434,900 1,434,200 1,433,700 1,436,900 1,436,300 1,610,400 1,597,300 1,506,000 1,714,100 1,722,800 1,731,500 1,737,100 1,792,500 1,897,600 1,903,200
Total debt 1,443,000 1,440,900 1,443,200 1,442,600 1,441,300 1,442,500 1,443,900 1,445,200 1,563,800 1,571,800 1,794,500 1,590,000 1,458,200 1,755,600 1,704,000 1,571,400 1,750,000 1,777,000 1,808,800 1,793,200 1,922,800 1,988,700 2,080,700
 
Total Hubbell Incorporated shareholders’ equity 2,739,100 2,620,700 2,472,700 2,360,900 2,318,700 2,256,900 2,213,300 2,229,800 2,168,800 2,125,700 2,082,700 2,070,000 2,016,800 1,959,900 1,914,900 1,947,100 1,903,100 1,835,900 1,808,100 1,780,600 1,754,800 1,684,900 1,662,000
Solvency Ratio
Debt to equity1 0.53 0.55 0.58 0.61 0.62 0.64 0.65 0.65 0.72 0.74 0.86 0.77 0.72 0.90 0.89 0.81 0.92 0.97 1.00 1.01 1.10 1.18 1.25
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 1.81 2.07 2.04 2.33 2.34 2.35 2.20 2.29 2.21 2.23 2.30 2.42 2.55 2.81 2.61
Eaton Corp. plc 0.50 0.52 0.50 0.51 0.56 0.59 0.58 0.52 0.57 0.79 0.68 0.54 0.57 0.58 0.59
GE Aerospace 0.73 0.70 0.71 0.89 0.97 0.94 0.86 0.87 1.68 1.90 2.12 2.11 2.39 2.43 2.41
Honeywell International Inc. 1.18 1.24 1.13 1.17 0.96 1.09 1.05 1.06 1.19 1.19 1.19 1.28 1.23 1.22 0.91
Lockheed Martin Corp. 1.88 1.90 1.62 1.68 0.96 1.02 1.16 1.07 1.21 1.87 1.93 2.02 2.56 3.38 3.68
RTX Corp. 0.51 0.49 0.47 0.44 0.48 0.45 0.43 0.43 0.44 0.44 0.44 0.44 0.48 0.49 1.18

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Debt to equity = Total debt ÷ Total Hubbell Incorporated shareholders’ equity
= 1,443,000 ÷ 2,739,100 = 0.53

2 Click competitor name to see calculations.

Analysis of the presented financial data reveals several notable trends in the company’s capital structure over the examined periods.

Total Debt

Total debt shows a general declining trend from the beginning of the period in March 2018 through to the end of 2021, decreasing from approximately $2,080,700 thousand to around $1,445,200 thousand by December 2021. Following this, total debt remains relatively stable with minor fluctuations, holding close to the $1,440,000 thousand mark from March 2022 through September 2023. Although there were some temporary increases between March 2020 and December 2020, followed by decreases, overall debt has been managed downwards and maintained at a lower level compared to 2018.

Total Shareholders’ Equity

Shareholders’ equity steadily increased throughout the entire period. Starting from approximately $1,662,000 thousand in March 2018, equity grew consistently reaching about $2,739,100 thousand by September 2023. This continuous growth across all quarters indicates a strengthening of the company’s net asset base and retention of earnings or successful equity financing activities over time.

Debt to Equity Ratio

The debt to equity ratio displays a clear downward trajectory from 1.25 in March 2018 to 0.53 in September 2023. This steady decline reflects the combined effect of reducing debt levels and increasing equity. Noteworthy is the pronounced drop in this ratio during 2019 and 2020, suggesting improved solvency and a more conservative leverage profile. The ratio stabilizes at a lower level around 0.5 to 0.6 in the final periods, indicating a shift towards a stronger equity position relative to debt.

Overall, the data indicates that the company has actively reduced its reliance on debt financing while simultaneously growing its equity base, leading to a substantially improved debt to equity ratio. This trend points to enhanced financial stability and a potentially lower risk profile over the reported timeframe.


Debt to Capital

Hubbell Inc., debt to capital calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Short-term debt and current portion of long-term debt 3,300 1,800 4,700 4,700 4,000 5,800 7,800 9,700 128,900 137,600 360,800 153,100 21,900 145,200 106,700 65,400 35,900 54,200 77,300 56,100 130,300 91,100 177,500
Long-term debt, excluding current portion 1,439,700 1,439,100 1,438,500 1,437,900 1,437,300 1,436,700 1,436,100 1,435,500 1,434,900 1,434,200 1,433,700 1,436,900 1,436,300 1,610,400 1,597,300 1,506,000 1,714,100 1,722,800 1,731,500 1,737,100 1,792,500 1,897,600 1,903,200
Total debt 1,443,000 1,440,900 1,443,200 1,442,600 1,441,300 1,442,500 1,443,900 1,445,200 1,563,800 1,571,800 1,794,500 1,590,000 1,458,200 1,755,600 1,704,000 1,571,400 1,750,000 1,777,000 1,808,800 1,793,200 1,922,800 1,988,700 2,080,700
Total Hubbell Incorporated shareholders’ equity 2,739,100 2,620,700 2,472,700 2,360,900 2,318,700 2,256,900 2,213,300 2,229,800 2,168,800 2,125,700 2,082,700 2,070,000 2,016,800 1,959,900 1,914,900 1,947,100 1,903,100 1,835,900 1,808,100 1,780,600 1,754,800 1,684,900 1,662,000
Total capital 4,182,100 4,061,600 3,915,900 3,803,500 3,760,000 3,699,400 3,657,200 3,675,000 3,732,600 3,697,500 3,877,200 3,660,000 3,475,000 3,715,500 3,618,900 3,518,500 3,653,100 3,612,900 3,616,900 3,573,800 3,677,600 3,673,600 3,742,700
Solvency Ratio
Debt to capital1 0.35 0.35 0.37 0.38 0.38 0.39 0.39 0.39 0.42 0.43 0.46 0.43 0.42 0.47 0.47 0.45 0.48 0.49 0.50 0.50 0.52 0.54 0.56
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.47 1.42 1.39 1.39 1.45 1.35 1.36 1.35 1.30 1.36 1.40 1.40 1.24 1.23 1.33
Caterpillar Inc. 0.64 0.67 0.67 0.70 0.70 0.70 0.69 0.70 0.69 0.69 0.70 0.71 0.72 0.74 0.72
Eaton Corp. plc 0.33 0.34 0.34 0.34 0.36 0.37 0.37 0.34 0.36 0.44 0.40 0.35 0.36 0.37 0.37
GE Aerospace 0.42 0.41 0.41 0.47 0.49 0.48 0.46 0.47 0.63 0.65 0.68 0.68 0.70 0.71 0.71
Honeywell International Inc. 0.54 0.55 0.53 0.54 0.49 0.52 0.51 0.51 0.54 0.54 0.54 0.56 0.55 0.55 0.48
Lockheed Martin Corp. 0.65 0.66 0.62 0.63 0.49 0.50 0.54 0.52 0.55 0.65 0.66 0.67 0.72 0.77 0.79
RTX Corp. 0.34 0.33 0.32 0.31 0.32 0.31 0.30 0.30 0.30 0.31 0.31 0.31 0.32 0.33 0.54

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,443,000 ÷ 4,182,100 = 0.35

2 Click competitor name to see calculations.

Total Debt
The total debt exhibits a general downward trend from the beginning of the period to the end. Starting at approximately 2,080,700 thousand USD in March 2018, it declines consistently through 2019, reaching its lowest point near 1,441,300 thousand USD by the fourth quarter of 2022. However, a slight increase is observed early in the dataset during the 2020 quarters, reflecting a temporary rise to about 1,755,600 thousand USD in mid-2020. The subsequent period sees stabilization and a mild decrease, with the last reported figure of total debt close to 1,443,000 thousand USD in September 2023. This overall reduction in debt levels indicates a progressive deleveraging effort or repayment plan over the observed timeframe.
Total Capital
Total capital remains more stable relative to total debt, though it shows some fluctuations. It begins near 3,742,700 thousand USD in the first quarter of 2018 and fluctuates around the 3.5 to 3.8 million USD range until early 2021. From 2021 onward, total capital demonstrates a gradual increase, peaking at around 4,182,100 thousand USD by the third quarter of 2023. This upward trend in total capital suggests continual growth in the company’s capital base, possibly due to retained earnings, issuance of equity, or other factors increasing overall capital.
Debt to Capital Ratio
The debt to capital ratio reflects a clear downward trend over the observed period, indicating improving capital structure and reduced leverage. The ratio starts at approximately 0.56 in March 2018, decreasing steadily to around 0.35 by September 2023. Notably, the ratio dropped more significantly after 2019, from about 0.45 to below 0.40, continuing to decline through 2022 and 2023. This trend corresponds with the reduction in total debt and simultaneous growth in total capital, reflecting enhanced financial stability and a more conservative approach to debt financing relative to the capital employed.
Overall Insights
The data reveals a consistent strategy towards lowering debt levels while gradually increasing total capital. The declining debt to capital ratio supports the interpretation of an improving financial leverage profile. The temporary fluctuations in debt observed in 2020 may relate to specific operational or market circumstances, but the general trend is towards stronger capitalization and reduced risk exposure. Such trends are typically favorable for creditworthiness and may reflect prudent financial management.

Debt to Assets

Hubbell Inc., debt to assets calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Short-term debt and current portion of long-term debt 3,300 1,800 4,700 4,700 4,000 5,800 7,800 9,700 128,900 137,600 360,800 153,100 21,900 145,200 106,700 65,400 35,900 54,200 77,300 56,100 130,300 91,100 177,500
Long-term debt, excluding current portion 1,439,700 1,439,100 1,438,500 1,437,900 1,437,300 1,436,700 1,436,100 1,435,500 1,434,900 1,434,200 1,433,700 1,436,900 1,436,300 1,610,400 1,597,300 1,506,000 1,714,100 1,722,800 1,731,500 1,737,100 1,792,500 1,897,600 1,903,200
Total debt 1,443,000 1,440,900 1,443,200 1,442,600 1,441,300 1,442,500 1,443,900 1,445,200 1,563,800 1,571,800 1,794,500 1,590,000 1,458,200 1,755,600 1,704,000 1,571,400 1,750,000 1,777,000 1,808,800 1,793,200 1,922,800 1,988,700 2,080,700
 
Total assets 5,768,300 5,640,900 5,480,800 5,402,600 5,338,400 5,238,200 5,169,700 5,281,500 5,241,700 5,172,800 5,292,900 5,085,100 4,877,100 5,058,700 4,959,100 4,903,000 5,074,300 5,036,000 4,976,100 4,872,100 4,997,500 4,971,100 4,975,400
Solvency Ratio
Debt to assets1 0.25 0.26 0.26 0.27 0.27 0.28 0.28 0.27 0.30 0.30 0.34 0.31 0.30 0.35 0.34 0.32 0.34 0.35 0.36 0.37 0.38 0.40 0.42
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.39 0.39 0.41 0.42 0.42 0.42 0.43 0.42 0.43 0.43 0.42 0.42 0.38 0.38 0.27
Caterpillar Inc. 0.43 0.44 0.44 0.45 0.45 0.46 0.46 0.46 0.46 0.46 0.47 0.47 0.50 0.50 0.49
Eaton Corp. plc 0.25 0.25 0.25 0.25 0.26 0.28 0.27 0.25 0.27 0.33 0.30 0.25 0.26 0.27 0.27
GE Aerospace 0.13 0.13 0.14 0.17 0.17 0.18 0.18 0.18 0.27 0.27 0.29 0.30 0.31 0.32 0.32
Honeywell International Inc. 0.33 0.34 0.32 0.31 0.28 0.31 0.31 0.30 0.33 0.33 0.34 0.35 0.35 0.35 0.28
Lockheed Martin Corp. 0.31 0.31 0.29 0.29 0.22 0.22 0.23 0.23 0.23 0.23 0.24 0.24 0.25 0.26 0.26
RTX Corp. 0.22 0.22 0.21 0.20 0.21 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.33

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,443,000 ÷ 5,768,300 = 0.25

2 Click competitor name to see calculations.

The analysis of the quarterly financial data indicates several notable trends in the company's leverage and asset base over the observed period.

Total debt
The total debt shows a general declining trend from March 2018 through December 2021, decreasing from approximately 2,080,700 thousand US dollars to about 1,445,200 thousand US dollars. There is some fluctuation between quarters, particularly during 2020, where debt decreased and then slightly increased again. From early 2022 to September 2023, total debt stabilizes around the 1,440,000 to 1,440,000 thousand US dollars range, indicating a plateau in debt reduction efforts.
Total assets
Total assets remain relatively stable between 4,870,000 thousand and 5,300,000 thousand US dollars from March 2018 through December 2021, with some quarter-to-quarter variability. From 2022 onward, the company exhibits a modest yet consistent increase in total assets, reaching about 5,768,300 thousand US dollars by September 2023. This upward trend suggests growth or acquisition of assets over recent periods.
Debt to assets ratio
The debt to assets ratio steadily declines over the entire period, moving from 0.42 in March 2018 to 0.25 by September 2023. This consistent decrease reflects an improving capital structure with relatively less reliance on debt financing compared to total asset size. The ratio shows that despite fluctuations in total debt and total assets, the company effectively reduced its leverage position over time, which may contribute to improved financial stability and risk profile.

In summary, the company's financial data points to a strategic reduction in debt relative to its assets, with a stable to increasing asset base and a lowered leverage ratio. This pattern suggests a focus on strengthening the balance sheet through debt management and asset growth, potentially enhancing financial resilience.


Financial Leverage

Hubbell Inc., financial leverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Total assets 5,768,300 5,640,900 5,480,800 5,402,600 5,338,400 5,238,200 5,169,700 5,281,500 5,241,700 5,172,800 5,292,900 5,085,100 4,877,100 5,058,700 4,959,100 4,903,000 5,074,300 5,036,000 4,976,100 4,872,100 4,997,500 4,971,100 4,975,400
Total Hubbell Incorporated shareholders’ equity 2,739,100 2,620,700 2,472,700 2,360,900 2,318,700 2,256,900 2,213,300 2,229,800 2,168,800 2,125,700 2,082,700 2,070,000 2,016,800 1,959,900 1,914,900 1,947,100 1,903,100 1,835,900 1,808,100 1,780,600 1,754,800 1,684,900 1,662,000
Solvency Ratio
Financial leverage1 2.11 2.15 2.22 2.29 2.30 2.32 2.34 2.37 2.42 2.43 2.54 2.46 2.42 2.58 2.59 2.52 2.67 2.74 2.75 2.74 2.85 2.95 2.99
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 4.24 4.68 4.61 5.16 5.19 5.16 4.82 5.02 4.85 4.85 4.87 5.11 5.13 5.57 5.35
Eaton Corp. plc 2.03 2.05 2.04 2.06 2.14 2.15 2.12 2.07 2.14 2.39 2.27 2.13 2.14 2.14 2.17
GE Aerospace 5.47 5.23 5.20 5.16 5.75 5.35 4.92 4.93 6.33 7.09 7.30 7.13 7.64 7.62 7.43
Honeywell International Inc. 3.56 3.60 3.54 3.73 3.40 3.55 3.45 3.47 3.60 3.56 3.53 3.68 3.51 3.50 3.25
Lockheed Martin Corp. 6.11 6.17 5.66 5.71 4.35 4.53 5.15 4.64 5.38 7.99 8.15 8.43 10.25 13.22 14.29
RTX Corp. 2.33 2.24 2.22 2.19 2.25 2.26 2.20 2.21 2.23 2.23 2.24 2.25 2.37 2.40 3.54

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Total Hubbell Incorporated shareholders’ equity
= 5,768,300 ÷ 2,739,100 = 2.11

2 Click competitor name to see calculations.

The quarterly financial data presents several notable trends over the observed periods. Total assets demonstrate some fluctuations but generally exhibit a gradual increase over time. Beginning at approximately 4,975,400 thousand US dollars at the end of March 2018, total assets show a moderate downward movement toward the end of 2018, followed by a recovery and upward trajectory from 2019 onward, ultimately reaching about 5,768,300 thousand US dollars by September 2023.

Total shareholders’ equity of Hubbell Incorporated reflects a consistent upward trend throughout the same timeframe. Starting at around 1,662,000 thousand US dollars in March 2018, equity experiences steady incremental growth, with only minor short-term variations. By the latest period available, September 2023, shareholders’ equity reaches approximately 2,739,100 thousand US dollars, indicating a substantial increase compared to the baseline period.

The financial leverage ratio decreases steadily over the observed quarters. Initially near 2.99 at the end of Q1 2018, the leverage ratio exhibits a consistent downward trend, declining to approximately 2.11 by Q3 2023. This reduction in the leverage ratio suggests a gradual strengthening of the company's capital structure, potentially reflecting increased equity relative to debt or other liabilities.

Total Assets
Exhibit a gentle upward progression with some minor declines toward the end of 2018, recovering and growing steadily thereafter.
Shareholders’ Equity
Showcases a consistent and steady increase over the full time span, indicating solid equity growth.
Financial Leverage Ratio
Demonstrates a clear downward trend, implying reduced reliance on debt financing and an improved equity base.

Overall, the data suggests a strengthening financial position characterized by asset growth, increasing equity, and declining leverage, which typically reflects enhanced financial stability and potentially lower financial risk.


Interest Coverage

Hubbell Inc., interest coverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 200,100 206,800 181,900 104,600 139,100 122,000 180,200 117,600 108,400 95,800 77,700 80,900 107,100 88,200 75,000 101,900 130,700 96,000 72,300 88,000 113,600 100,300 58,300
Add: Net income attributable to noncontrolling interest 1,900 1,400 1,500 1,000 1,700 1,500 1,300 1,800 2,100 800 1,400 1,700 1,500 900 700 1,200 1,900 1,900 1,500 1,200 1,100 2,100 1,500
Less: Income (loss) from discontinued operations, net of tax (18,300) (11,200) (13,600) 77,700 18,100 5,000 7,000 4,400
Add: Income tax expense 63,000 65,600 51,600 32,900 38,800 38,900 29,600 22,600 27,500 16,900 21,200 19,000 30,400 23,900 24,200 27,800 35,400 25,700 24,200 25,500 27,800 31,600 16,000
Add: Interest expense, net 7,800 9,200 9,700 11,700 12,100 12,700 13,100 13,300 13,600 12,600 15,200 14,500 15,000 15,700 15,100 17,700 17,000 17,200 17,500 17,900 18,400 18,800 17,300
Earnings before interest and tax (EBIT) 272,800 283,000 244,700 168,500 202,900 188,700 146,500 137,200 146,600 119,100 111,100 116,100 154,000 128,700 115,000 148,600 185,000 140,800 115,500 132,600 160,900 152,800 93,100
Solvency Ratio
Interest coverage1 25.23 21.06 17.42 14.25 13.19 11.75 10.44 9.40 8.82 8.73 8.44 8.52 8.60 8.81 8.80 8.50 8.25 7.74 7.74 7.45
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -0.06 -0.85 -0.53 -0.98 -2.54 -1.40 -1.31 -0.88 -2.29 -2.55 -4.26 -5.71
Caterpillar Inc. 24.81 23.80 21.33 20.80 22.05 20.08 19.10 17.88 14.11 11.79 9.28 8.80
Eaton Corp. plc 22.25 19.68 19.85 21.22 21.33 24.31 22.57 21.11 20.08 15.71 11.87 12.72
GE Aerospace 9.41 8.49 6.73 1.88 -1.66 -1.16 -1.49 -0.96 2.15 1.11 0.65 2.59
Honeywell International Inc. 10.68 12.45 14.34 16.41 20.95 20.60 21.35 22.09 20.98 18.89 16.79 17.75
Lockheed Martin Corp. 10.42 11.74 10.58 11.72 13.31 10.88 14.12 14.27 13.67 15.97 15.44 14.93

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Interest coverage = (EBITQ3 2023 + EBITQ2 2023 + EBITQ1 2023 + EBITQ4 2022) ÷ (Interest expenseQ3 2023 + Interest expenseQ2 2023 + Interest expenseQ1 2023 + Interest expenseQ4 2022)
= (272,800 + 283,000 + 244,700 + 168,500) ÷ (7,800 + 9,200 + 9,700 + 11,700) = 25.23

2 Click competitor name to see calculations.

The data reveals several significant trends concerning earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over the analyzed quarters.

Earnings Before Interest and Tax (EBIT)
The EBIT figures exhibit considerable fluctuation across the periods. Initially, EBIT rose from 93,100 thousand USD in early 2018 to a peak of 185,000 thousand USD by the third quarter of 2019. This growth phase was followed by a decline during 2020, likely influenced by external factors impacting the overall economy. From 2021 onward, EBIT steadily increased, reaching a high of 283,000 thousand USD by the second quarter of 2023, illustrating a strong recovery and growth trajectory in recent periods.
Interest Expense, Net
The net interest expense demonstrates a gradual but consistent decline over time. Starting from 17,300 thousand USD in the first quarter of 2018, the metric diminished steadily with some minor variability, reaching 7,800 thousand USD by the third quarter of 2023. This downward trend suggests improved debt management or reduced borrowing costs across the examined timeframe.
Interest Coverage Ratio
Interest coverage ratios were initially absent in the early periods but from late 2018 onward, they show a clear upward trend. Beginning at approximately 7.45 and climbing progressively each quarter, the ratio rose sharply from levels below 9 around 2019 to a notably strong coverage ratio of 25.23 by the third quarter of 2023. This substantial increase indicates a growing ability to meet interest obligations comfortably, reflecting improved profitability relative to interest expenses.

Overall, the analysis highlights a positive financial trajectory characterized by rising EBIT figures post-2020, decreasing interest expenses, and markedly increasing interest coverage ratios. These trends collectively point toward enhanced operational performance and financial stability over the reported periods.