Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Analysis of Reportable Segments
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- Current Ratio since 2005
- Total Asset Turnover since 2005
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- Analysis of Revenues
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Profitability Ratios (Summary)
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).
- Gross Profit Margin
- The gross profit margin exhibited modest fluctuations over the five-year period, beginning at 29.02% in 2018 and slightly increasing to 29.46% in 2019. This was followed by a subtle decline to 28.89% in 2020 and a more pronounced decrease to 27.46% in 2021. In 2022, the margin recovered notably, reaching 29.74%, the highest point in the observed period. This suggests resilience in cost management and pricing strategies despite some volatility.
- Operating Profit Margin
- The operating profit margin showed a generally upward trend, starting at 12.43% in 2018 and rising steadily to 14.33% by 2022. Minor dips occurred in 2020 and 2021 at 12.73% and 12.69% respectively, but the overall increase indicates improved operational efficiency and potentially better control over operating expenses.
- Net Profit Margin
- Net profit margin increased consistently throughout the period, moving from 8.04% in 2018 to 11.03% in 2022. Despite a slight dip in 2020 to 8.39%, subsequent years saw significant growth, with an especially strong jump in 2022. This trend reflects enhanced profitability after all expenses, including taxes and interest, and suggests strengthening financial health.
- Return on Equity (ROE)
- ROE demonstrated some variability, initially rising from 20.23% in 2018 to 20.59% in 2019 before declining sharply to 16.97% in 2020. Following this decline, there was a gradual recovery to 17.92% in 2021 and a substantial increase to 23.12% in 2022, marking the peak in the period. The fluctuation points to varying effectiveness in generating returns on shareholder equity, with a strong rebound in the final year.
- Return on Assets (ROA)
- ROA showed a pattern similar to ROE but with lower absolute values. It increased from 7.39% in 2018 to 8.18% in 2019, dropped to 6.91% in 2020, then rose to 7.56% in 2021 and further to 10.10% in 2022. The upward trend in the last two years indicates improved asset utilization and operational performance.
Return on Sales
Return on Investment
Gross Profit Margin
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Gross profit | ||||||
Net sales | ||||||
Profitability Ratio | ||||||
Gross profit margin1 | ||||||
Benchmarks | ||||||
Gross Profit Margin, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period exhibits notable trends in sales, gross profit, and gross profit margin.
- Net Sales
- Net sales initially increased modestly from 4,481,700 thousand USD in 2018 to 4,591,000 thousand USD in 2019. Subsequently, there was a decline to 4,186,000 thousand USD in 2020, remaining nearly flat at 4,194,100 thousand USD in 2021. A significant rebound occurred in 2022, with net sales rising sharply to 4,947,900 thousand USD, surpassing previous years.
- Gross Profit
- Gross profit followed a similar pattern, increasing from 1,300,400 thousand USD in 2018 to a peak of 1,352,700 thousand USD in 2019. Then a decline was observed in 2020 and 2021, reaching a low point of 1,151,500 thousand USD in 2021. In 2022, gross profit showed a substantial recovery to 1,471,600 thousand USD, the highest level within the analyzed period.
- Gross Profit Margin
- The gross profit margin fluctuated slightly during the period. Starting at 29.02% in 2018, it increased marginally to 29.46% in 2019 before declining to 28.89% in 2020 and further to 27.46% in 2021. In 2022, the margin improved markedly to 29.74%, indicating better profitability relative to net sales compared to the immediately preceding years.
Overall, the data reflects a challenging phase in 2020 and 2021 marked by decreased sales and profitability, possibly attributable to external market factors. The strong recovery in 2022 suggests improved operational or market conditions, resulting in increased revenue, gross profit, and enhanced profit margins.
Operating Profit Margin
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Operating income | ||||||
Net sales | ||||||
Profitability Ratio | ||||||
Operating profit margin1 | ||||||
Benchmarks | ||||||
Operating Profit Margin, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Operating Profit Margin, Sector | ||||||
Capital Goods | ||||||
Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibited a moderate increase from 556.9 million USD in 2018 to 596.6 million USD in 2019. This was followed by a decline over the next two years, reaching approximately 533.0 million USD in 2020 and maintaining a similar level in 2021 at 532.3 million USD. A notable recovery occurred in 2022, where operating income rose substantially to 709.1 million USD, indicating a strong improvement in operational profitability during that year.
- Net Sales
- Net sales showed a gradual upward trend in 2018 and 2019, increasing from about 4.48 billion USD to 4.59 billion USD. However, 2020 and 2021 witnessed a decrease to 4.19 billion USD approximately, reflecting a contraction in sales likely influenced by external factors impacting revenue. In 2022, net sales rebounded strongly to nearly 4.95 billion USD, surpassing previous years and suggesting significant growth in business volume or price realization.
- Operating Profit Margin
- The operating profit margin maintained relative stability from 2018 through 2021, fluctuating narrowly between 12.43% and 12.99%. Despite the decreases in operating income and net sales during 2020 and 2021, the margin percentage remained fairly consistent, indicating efficient cost management relative to sales. In 2022, there was an increase in margin to 14.33%, reflecting improved profitability on sales and possibly better operational leverage or cost control.
- Overall Insights
- Overall, the data reflects a period of initial growth followed by a contraction and eventual recovery from 2018 to 2022. The decline in both operating income and net sales during 2020 and 2021 suggests challenges, potentially external economic or industry-specific factors affecting performance. The strong resurgence in 2022 in both sales and operating income, as well as margin expansion, points to a positive turnaround. This recovery phase demonstrates enhanced operational efficiency and robust sales performance contributing to improved financial health.
Net Profit Margin
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net income attributable to Hubbell Incorporated | ||||||
Net sales | ||||||
Profitability Ratio | ||||||
Net profit margin1 | ||||||
Benchmarks | ||||||
Net Profit Margin, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Net Profit Margin, Sector | ||||||
Capital Goods | ||||||
Net Profit Margin, 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 profit margin = 100 × Net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several key trends and developments in overall financial performance.
- Net Income
- Net income attributable to the company showed an overall increasing trend with fluctuations. It started at 360,200 thousand USD in 2018, rose to 400,900 thousand USD in 2019, then decreased to 351,200 thousand USD in 2020. Following this dip, net income increased again to 399,500 thousand USD in 2021 and experienced significant growth to 545,900 thousand USD in 2022. This suggests a recovery from the 2020 decline and strong profitability gains by the end of the period.
- Net Sales
- Net sales fluctuated during the period under review. Sales increased moderately from 4,481,700 thousand USD in 2018 to 4,591,000 thousand USD in 2019. However, there was a noticeable decline in 2020 to 4,186,000 thousand USD, likely impacted by external factors affecting revenue. Sales stabilized in 2021 with a slight increase to 4,194,100 thousand USD and then rebounded strongly in 2022 reaching 4,947,900 thousand USD, indicating recovery and growth in top-line revenue.
- Net Profit Margin
- Profitability, as measured by net profit margin, generally improved over the five years. The margin increased from 8.04% in 2018 to 8.73% in 2019. It slightly decreased to 8.39% in 2020, then rose significantly to 9.53% in 2021, and ultimately reached 11.03% in 2022. This upward trend reflects better cost control and/or improved pricing strategy, contributing to greater profitability despite some sales volatility.
In summary, the company demonstrated resilience with a rebound in both net sales and net income after a 2020 downturn. The consistent improvement in net profit margin indicates enhanced operational efficiency or favorable profit conditions during the latter years, culminating in notably stronger financial performance in 2022 compared to the start of the period.
Return on Equity (ROE)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net income attributable to Hubbell Incorporated | ||||||
Total Hubbell Incorporated shareholders’ equity | ||||||
Profitability Ratio | ||||||
ROE1 | ||||||
Benchmarks | ||||||
ROE, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
ROE, Sector | ||||||
Capital Goods | ||||||
ROE, 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
ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Total Hubbell Incorporated shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends regarding the profitability, equity, and return on equity (ROE) of the company.
- Net Income
- The net income attributable to the company fluctuated within the observed timeframe. It increased from $360.2 million in 2018 to a peak of $400.9 million in 2019, then declined to $351.2 million in 2020. Subsequently, it rose again to $399.5 million in 2021 and experienced a significant jump to $545.9 million in 2022. Overall, there is an upward trend with some volatility, culminating in a strong increase in the final year.
- Total Shareholders' Equity
- Total shareholders’ equity showed a consistent upward trajectory across the entire period. Starting from approximately $1.78 billion in 2018, equity grew steadily each year, reaching about $2.36 billion in 2022. The continuous increase indicates ongoing accumulation of assets and retained earnings, reflecting financial strengthening and capital growth.
- Return on Equity (ROE)
- ROE percentages demonstrate variable performance in terms of profitability relative to shareholders’ equity. The ROE was 20.23% in 2018, slightly increasing to 20.59% in 2019. There was a decline to 16.97% in 2020, with a moderate recovery to 17.92% in 2021. In 2022, ROE rose substantially to 23.12%, surpassing prior levels. This pattern suggests that despite fluctuations in net income and steady equity growth, the company improved its efficiency in generating profit from shareholders’ equity most notably in the last reported year.
In summary, the company experienced growth in net income and equity, with a notable recovery and improvement in ROE in 2022. The data reflects resilience and enhanced profitability performance after the decline experienced in 2020, potentially indicative of improved operational efficiency or favorable market conditions in the later years.
Return on Assets (ROA)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net income attributable to Hubbell Incorporated | ||||||
Total assets | ||||||
Profitability Ratio | ||||||
ROA1 | ||||||
Benchmarks | ||||||
ROA, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
ROA, Sector | ||||||
Capital Goods | ||||||
ROA, 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
ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Hubbell Incorporated
- The net income demonstrates an overall upward trajectory from 2018 to 2022. Starting at $360.2 million in 2018, it increased to $400.9 million in 2019, followed by a decline to $351.2 million in 2020. Subsequently, it rose again to $399.5 million in 2021 and experienced a significant jump to $545.9 million in 2022, reflecting a strong recovery and growth in profitability in the most recent year.
- Total Assets
- Total assets show a consistent incremental increase over the five-year period. Beginning at $4.87 billion in 2018, assets grew marginally to $4.90 billion in 2019 and continued to increase steadily through 2020 ($5.08 billion), 2021 ($5.28 billion), and 2022 ($5.40 billion). This steady growth indicates ongoing asset accumulation and potential expansion of the company's resource base.
- Return on Assets (ROA)
- The return on assets follows a fluctuating but generally positive pattern. Initially, ROA increased from 7.39% in 2018 to 8.18% in 2019, then declined to 6.91% in 2020. It recovered in 2021 to 7.56%, and then rose sharply to 10.1% in 2022. This improvement in ROA in the latest year suggests enhanced efficiency in generating profits from existing assets.
- Overall Insights
- The data indicates that despite some variability, especially in 2020, the company exhibited growth in profitability and asset base over the observed period. The considerable rise in net income and ROA in 2022 points to an improvement in operational performance and asset utilization efficiency. The steady asset growth further supports a positive outlook toward capacity expansion or investment activities.