Hubbell Inc (HUBB)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,622,200 | 5,333,700 | 4,894,800 | 4,120,400 | 4,125,400 |
| Property, plant and equipment | US$ in thousands | 726,600 | 652,600 | 528,000 | 459,500 | 438,700 |
| Fixed asset turnover | 7.74 | 8.17 | 9.27 | 8.97 | 9.40 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,622,200K ÷ $726,600K
= 7.74
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. Hubbell Inc's fixed asset turnover ratio has shown a decreasing trend over the years, declining from 9.40 in 2020 to 7.74 in 2024. This indicates that the company's ability to generate sales from its fixed assets has weakened over the period. A high fixed asset turnover ratio is generally preferred as it suggests that the company is using its fixed assets effectively to generate revenue. In the case of Hubbell Inc, the declining trend in the ratio may warrant further investigation into the company's asset management efficiency and operational performance.
Peer comparison
Dec 31, 2024