Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Hubbell Inc., long-term (investment) activity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibited some fluctuations over the analyzed period. Starting at 8.93 in 2018, it slightly increased to 9.09 in 2019, then declined to 8.06 in 2020 before rising again to 9.13 in 2021 and 9.37 in 2022. This pattern suggests a temporary dip in 2020, possibly due to external factors impacting asset utilization, followed by a recovery and gradual improvement through 2022.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- When including operating leases and right-of-use assets, the net fixed asset turnover showed a consistent downward trend from 8.93 in 2018 to 6.73 in 2020, followed by a moderate recovery to 7.76 in 2021 and marginal improvement to 7.78 in 2022. The steeper decline compared to the standard net fixed asset turnover could indicate increased capitalization of lease assets affecting the ratio calculation.
- Total asset turnover
- The total asset turnover ratio displayed a decline from 0.92 in 2018 to a low of 0.79 in 2021, before rebounding to 0.92 in 2022. This indicates a reduction in the efficiency of total asset utilization to generate sales during the middle years, with effectiveness restored by the final reported year.
- Equity turnover
- Equity turnover showed a gradual decreasing trend from 2.52 in 2018 to 1.88 in 2021, signalling diminishing sales relative to the shareholders' equity during this period. However, in 2022, there was a partial recovery to 2.1, suggesting an improvement in equity efficiency towards the end of the term.
Net Fixed Asset Turnover
Hubbell Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant, and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2022 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant, and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally increasing trend over the observed period, starting at 4,481,700 thousand USD in 2018 and rising to 4,947,900 thousand USD in 2022. An exception was noted in 2020 and 2021, where sales decreased to 4,186,000 thousand USD and 4,194,100 thousand USD respectively, before rebounding strongly in 2022.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment displayed some variability across the years. It increased modestly from 502,100 thousand USD in 2018 to 519,200 thousand USD in 2020, then declined to 459,500 thousand USD in 2021. A recovery was observed in 2022, with the value rising to 528,000 thousand USD, the highest in the series.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio fluctuated within the range of approximately 8.06 to 9.37. It peaked at 9.37 in 2022, indicating improved efficiency in utilizing fixed assets to generate sales that year. The lowest ratio was 8.06 in 2020, coinciding with the reduction in net sales and a temporary rise in fixed assets, suggesting less efficient asset use during that period.
- Summary of Findings
- Overall, the data indicates that sales performance faced a downturn in 2020 and 2021, likely impacting asset turnover negatively. Asset base changes were inconsistent but generally showed an upward adjustment by 2022. The improved asset turnover ratio in 2022, alongside higher net sales, suggests enhanced operational efficiency and better utilization of fixed assets in the most recent period analyzed.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Hubbell Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant, and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
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).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibit a generally increasing trend across the analyzed periods, starting at 4,481,700 thousand US dollars in 2018, rising slightly to 4,591,000 in 2019, then declining to 4,186,000 in 2020. This decrease in 2020 may reflect external challenges faced during that year. Sales stabilized in 2021 at 4,194,100 and significantly increased in 2022, reaching 4,947,900 thousand US dollars, indicating a recovery and growth surpassing previous years.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment, including operating lease right-of-use assets, shows variability over the years. Beginning at 502,100 thousand US dollars in 2018, there was a notable increase to 602,000 in 2019 and a further increase to 622,200 in 2020. However, in 2021, the value declined to 540,800 before rising again to 636,000 in 2022. This fluctuation suggests periods of capital investment followed by possible asset disposals or depreciation effects, with the overall trend indicating investment growth by the end of the period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate sales, declined from 8.93 in 2018 to 6.73 in 2020, indicating a reduction in asset utilization efficiency. The ratio improved to 7.76 in 2021 and slightly increased to 7.78 in 2022. Despite the recent improvements, the ratio remains below the initial 2018 level, suggesting that while asset utilization is recovering, it has not yet returned to the earlier peak efficiency.
Total Asset Turnover
Hubbell Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2022 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends across the reported periods. Net sales show a generally increasing pattern, with a notable dip in 2020 followed by recovery in 2021 and a substantial rise in 2022. Specifically, sales increased from approximately 4.48 billion US dollars in 2018 to nearly 4.95 billion US dollars in 2022, indicating positive growth over the five-year span despite the slight downturn during 2020.
Total assets present a steady upward trend throughout the period under review. Beginning at about 4.87 billion US dollars in 2018, assets increased annually to reach approximately 5.40 billion US dollars in 2022. This growth suggests ongoing investment or accumulation of assets consistent with business expansion or capital expenditures.
The total asset turnover ratio, which measures the efficiency of asset use in generating sales, fluctuates over the years. It started close to 0.92 in 2018, rose marginally in 2019 to 0.94, but then declined noticeably to 0.82 in 2020 and further to 0.79 in 2021. By 2022, the ratio rebounded back to 0.92. Such variations imply changes in operational efficiency, with declines in 2020 and 2021 possibly linked to lower sales relative to assets. The rebound in 2022 aligns with the sales increase, suggesting improved asset utilization.
- Net Sales
- Increased overall from 4.48 billion US dollars (2018) to 4.95 billion US dollars (2022), with a drop in 2020.
- Total Assets
- Consistently rose year-over-year by approximately 5% over the full period, from 4.87 billion to 5.40 billion US dollars.
- Total Asset Turnover
- Started at 0.92, peaked slightly at 0.94, declined in 2020-2021 to 0.79, then returned to 0.92 in 2022, indicating varying efficiency in asset usage.
Overall, the data depict a company experiencing growth in both sales and assets, but with fluctuations in efficiency as reflected by asset turnover. The dip in 2020 likely reflects external challenges impacting sales, while the recovery in subsequent years points towards operational adjustments and market recovery.
Equity Turnover
Hubbell Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total Hubbell Incorporated shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2022 Calculation
Equity turnover = Net sales ÷ Total Hubbell Incorporated shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a fluctuating trend over the five-year period. Starting at $4,481,700 thousand in 2018, sales increased modestly to $4,591,000 thousand in 2019, followed by a decline to $4,186,000 thousand in 2020. In 2021, net sales remained relatively stable at $4,194,100 thousand before experiencing a significant increase to $4,947,900 thousand in 2022. Overall, the sales trajectory reflects recovery and growth after a dip during 2020 and 2021.
- Total Shareholders' Equity
- Total shareholders’ equity demonstrated consistent growth throughout the reviewed period. Beginning at $1,780,600 thousand in 2018, equity increased year over year to reach $2,360,900 thousand by the end of 2022. This steady upward trend indicates a strengthening equity base and suggests ongoing retention of earnings or capital infusion.
- Equity Turnover Ratio
- The equity turnover ratio showed a declining trend from 2018 through 2021, decreasing from 2.52 in 2018 to 1.88 in 2021. This decline indicates that net sales generated per unit of equity were reducing during this time frame. However, in 2022, the ratio improved to 2.1, reflecting enhanced efficiency in using shareholders' equity to generate sales, although it remained below 2018 levels.