Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Hubbell Inc., long-term (investment) activity ratios (quarterly data)
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio displayed a generally stable to slightly increasing trend over the analyzed periods. Initially, the ratio hovered around 9.05 to 9.31 in 2019, then experienced a decline through 2020, reaching a low of 8.06 by the end of that year. From early 2021, the ratio recovered strongly, peaking at 10.09 in September 2022, before exhibiting a moderate decline to 9.17 by the third quarter of 2023. Overall, this signals improved efficiency in generating sales from fixed assets over time, particularly after the downturn in 2020.
- Total Asset Turnover
- The total asset turnover ratio showed a modest decline from 0.92 in early 2019 to a low of 0.77 by the first quarter of 2021. After this trough, a gradual recovery occurred through 2022 and into 2023, with the ratio approaching previous levels around 0.91 by the third quarter of 2023. This indicates a slight reduction in asset utilization efficiency during the pandemic period, followed by a return to more typical performance in recent quarters.
- Equity Turnover
- The equity turnover ratio exhibited a downward trend over the full timeframe analyzed. Starting at 2.53 in the first quarter of 2019, the ratio progressively decreased to about 1.88 by the end of 2021. Although there was a partial recovery to roughly 2.10 in late 2022, the ratio declined again to below 2.00 by the third quarter of 2023. This pattern suggests decreased efficiency in generating revenues from shareholders' equity, with some volatility but an overall negative trend in turnover.
- Summary
- Across these three key turnover metrics, the data reflects the impact of external pressures around 2020, likely associated with economic disruptions. Asset utilization ratios dipped during this period but recovered thereafter, particularly net fixed asset turnover which showed significant improvement. In contrast, equity turnover demonstrated a more sustained decline, indicating challenges in achieving revenue generation relative to equity levels. The trends suggest improving operational efficiencies post-2020, though equity-related efficiency warrants attention.
Net Fixed Asset Turnover
Hubbell Inc., net fixed asset turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 1,375,800) | 1,365,900) | 1,285,400) | 1,219,600) | 1,316,200) | 1,256,000) | 1,156,100) | 1,100,100) | 1,083,400) | 1,054,300) | 956,300) | 1,037,900) | 1,108,600) | 949,200) | 1,090,300) | 1,103,300) | 1,204,000) | 1,196,400) | 1,087,300) | ||||||
| Property, plant, and equipment, net | 572,200) | 557,500) | 539,000) | 528,000) | 478,500) | 464,800) | 460,400) | 459,500) | 521,200) | 518,700) | 516,700) | 519,200) | 485,300) | 489,100) | 495,500) | 505,200) | 497,600) | 509,300) | 504,500) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 9.17 | 9.30 | 9.42 | 9.37 | 10.09 | 9.89 | 9.54 | 9.13 | 7.93 | 8.01 | 7.84 | 8.06 | 8.76 | 8.89 | 9.27 | 9.09 | 9.31 | 9.05 | 9.07 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 7.23 | 7.04 | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 5.17 | 5.10 | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 6.77 | 6.75 | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 5.50 | 5.58 | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 6.64 | 6.59 | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 8.41 | 8.46 | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 4.37 | 4.61 | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Net fixed asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Property, plant, and equipment, net
= (1,375,800 + 1,365,900 + 1,285,400 + 1,219,600)
÷ 572,200 = 9.17
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed periods. Net sales experienced fluctuations with an overall upward trajectory beginning in early 2022. After a decline during 2020, likely reflecting broader economic conditions, net sales recovered significantly, reaching the highest reported levels in the last quarters of 2023. This recovery and growth suggest improving market demand or successful sales strategies implemented by the company.
Regarding property, plant, and equipment (PP&E), net values exhibit relative stability with moderate increases over time, particularly from early 2022 onward. A dip is observable in late 2021, but subsequent quarters show a consistent upward trend through 2023. This pattern may indicate ongoing investments in fixed assets or capital expenditures to support operational capacity.
The net fixed asset turnover ratio demonstrates some variability but generally remains within a consistent range. Early in the data, the ratio shows values close to or slightly above 9.0, indicating robust efficiency in the use of fixed assets to generate sales. A decline during the 2020 period aligns with the reduced sales observed during the same timeframe, negatively impacting asset turnover. Post-2021, the ratio improves significantly, peaking above 10.0 in mid-2022, suggesting enhanced asset utilization efficiency likely driven by increased sales or better operational management. In the most recent quarters, the ratio slightly decreases but remains healthy, indicating stable efficiency in asset deployment relative to sales.
- Net Sales
- Experience a dip during 2020 followed by a steady recovery and growth reaching peak levels in 2023.
- Property, Plant, and Equipment, Net
- Show relative stability with increased investment noted from early 2022 onward, supporting higher production capacity.
- Net Fixed Asset Turnover Ratio
- Fluctuates in line with sales trends, showing decreased efficiency during sales downturns in 2020 and improved efficiency post-2021, peaking in mid-2022 before stabilizing.
In summary, the company displayed resilience through market challenges evidenced by recovery and growth in sales and asset utilization efficiency. Investment in fixed assets appears aligned with growth phases, supporting operational expansion or modernization efforts. The overall pattern reflects a positive outlook in both sales performance and asset management over the latest periods.
Total Asset Turnover
Hubbell Inc., total asset turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 1,375,800) | 1,365,900) | 1,285,400) | 1,219,600) | 1,316,200) | 1,256,000) | 1,156,100) | 1,100,100) | 1,083,400) | 1,054,300) | 956,300) | 1,037,900) | 1,108,600) | 949,200) | 1,090,300) | 1,103,300) | 1,204,000) | 1,196,400) | 1,087,300) | ||||||
| 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.91 | 0.92 | 0.93 | 0.92 | 0.90 | 0.88 | 0.85 | 0.79 | 0.79 | 0.80 | 0.77 | 0.82 | 0.87 | 0.86 | 0.93 | 0.94 | 0.91 | 0.91 | 0.92 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.56 | 0.55 | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.73 | 0.72 | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.61 | 0.60 | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.43 | 0.42 | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.59 | 0.58 | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 1.19 | 1.18 | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.41 | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Total asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total assets
= (1,375,800 + 1,365,900 + 1,285,400 + 1,219,600)
÷ 5,768,300 = 0.91
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibit a fluctuating but generally increasing trend over the analyzed periods. Starting at approximately 1,087,300 thousand US dollars in March 2019, sales peaked initially in September 2019 around 1,204,000 thousand. The subsequent quarters through 2020 show volatility with a notable dip in June 2020 to 949,200 thousand, likely reflecting external market or economic impacts. From early 2021, net sales demonstrate a consistent upward trajectory, reaching a high of approximately 1,375,800 thousand by September 2023. This strong growth phase suggests recovery and expansion in sales performance, culminating in near-record quarterly sales by the end of the period.
- Total Assets
- Total assets remain relatively stable with minor fluctuations throughout the examined quarters. Beginning at about 4,976,100 thousand dollars in March 2019, the data reflects slight variations within a narrow range during 2019 and 2020, with a low point below 4,880,000 thousand observed around the third quarter of 2020. After this period, asset levels generally trend upwards, reaching approximately 5,768,300 thousand by the third quarter of 2023. This gradual increase in total assets indicates measured growth in the company’s asset base, possibly supporting expanding operations.
- Total Asset Turnover
- The total asset turnover ratio, indicating the efficiency of asset use in generating sales, displays an initial steady pattern near 0.91-0.94 during 2019. A decline occurs through 2020, hitting a low around 0.82 at year-end. The trend continues with lower efficiency ratios in early 2021, dropping to approximately 0.77, possibly linked to the earlier dip in sales and asset adjustments. From mid-2021 onward, the ratio improves consistently, climbing back to about 0.91 by late 2023. This recovery reflects enhanced operational efficiency, as the company is generating more sales per unit of asset, aligning with sales growth and asset base expansion.
Equity Turnover
Hubbell Inc., equity turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 1,375,800) | 1,365,900) | 1,285,400) | 1,219,600) | 1,316,200) | 1,256,000) | 1,156,100) | 1,100,100) | 1,083,400) | 1,054,300) | 956,300) | 1,037,900) | 1,108,600) | 949,200) | 1,090,300) | 1,103,300) | 1,204,000) | 1,196,400) | 1,087,300) | ||||||
| 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 1.92 | 1.98 | 2.05 | 2.10 | 2.08 | 2.04 | 1.99 | 1.88 | 1.91 | 1.96 | 1.95 | 2.02 | 2.11 | 2.22 | 2.40 | 2.36 | 2.43 | 2.51 | 2.53 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.10 | 3.39 | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 1.23 | 1.23 | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 2.34 | 2.21 | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 2.11 | 2.09 | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 7.30 | 7.29 | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.96 | 0.97 | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Equity turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total Hubbell Incorporated shareholders’ equity
= (1,375,800 + 1,365,900 + 1,285,400 + 1,219,600)
÷ 2,739,100 = 1.92
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales demonstrated fluctuations over the quarters analyzed, beginning with a rise from approximately 1,087,300 US$ thousand in the first quarter of 2019 to a peak of around 1,204,000 US$ thousand in the third quarter of 2019. This was followed by a notable decline in early 2020, reaching a low of approximately 949,200 US$ thousand in the second quarter of 2020. Subsequently, net sales recovered and showed an overall upward trend through 2021 and 2022, culminating in a high of approximately 1,316,200 US$ thousand in the third quarter of 2022. However, the fourth quarter of 2022 and the first three quarters of 2023 displayed more moderate increases, with net sales nearing 1,375,800 US$ thousand in the third quarter of 2023.
- Total Shareholders’ Equity
- The total shareholders’ equity steadily increased throughout the period under review. Beginning at approximately 1,808,100 US$ thousand in the first quarter of 2019, it rose consistently across all quarters, reaching about 2,739,100 US$ thousand by the third quarter of 2023. This growth reflects ongoing capitalization and retained earnings accumulation, indicating strengthening equity base over time.
- Equity Turnover Analysis
- Equity turnover exhibited a declining trend from early 2019 through most of 2021. It started at 2.53 in the first quarter of 2019 and progressively decreased to 1.88 by the fourth quarter of 2021. This trend suggests a reduced efficiency in generating sales from equity during this timeframe. A slight recovery was observed starting in early 2022, with values increasing to a peak of 2.10 in the fourth quarter of 2022 before beginning to decline again to approximately 1.92 by the third quarter of 2023. The fluctuations indicate varying levels of operational efficiency and the possible influence of changes in net sales and equity levels.
- Overall Insights
- The data reflect a company recovering from a sales decline in early 2020, possibly due to external market conditions or operational disruptions, with net sales rebounding strongly into 2022. The consistent increase in shareholders’ equity points to a stable financial foundation and growth in the company's net worth. The equity turnover ratio’s decline followed by partial recovery suggests that sales growth did not consistently keep pace with equity growth, impacting operational efficiency metrics during certain periods. This composite picture underscores the importance of balancing growth in sales with effective equity utilization.