Hubbell Inc (HUBB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,333,700 | 4,894,800 | 4,120,400 | 4,125,400 | 4,543,700 |
| Property, plant and equipment | US$ in thousands | 652,600 | 528,000 | 459,500 | 438,700 | 505,200 |
| Fixed asset turnover | 8.17 | 9.27 | 8.97 | 9.40 | 8.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,333,700K ÷ $652,600K
= 8.17
The fixed asset turnover ratio for Hubbell Inc. has fluctuated over the past five years, ranging from a low of 8.06 in 2020 to a high of 9.37 in 2022. This ratio measures the efficiency of the company in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
In general, Hubbell Inc. has shown a relatively high level of efficiency in utilizing its fixed assets to generate sales revenue over the period analyzed, with ratios consistently above 8. While there was a slight dip in 2020, the company rebounded in subsequent years, particularly in 2022.
It is important to further investigate the reasons behind these fluctuations in the fixed asset turnover ratio to understand the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023