Hubbell Inc (HUBB)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	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
Revenue (ttm)	US$ in thousands	5,601,600	5,602,400	5,527,800	5,432,000	5,335,100	5,207,000	5,143,100	5,029,700	4,896,200	4,789,600	4,685,500	4,597,700	4,518,800	4,456,600	4,350,200	4,128,200	4,140,200	4,205,600	4,320,700	4,566,400
Property, plant and equipment	US$ in thousands	726,600	692,600	674,500	662,200	652,600	572,200	557,500	539,000	528,000	478,500	464,800	460,400	459,500	521,200	518,700	516,700	438,700	485,300	489,100	495,500
Fixed asset turnover		7.71	8.09	8.20	8.20	8.18	9.10	9.23	9.33	9.27	10.01	10.08	9.99	9.83	8.55	8.39	7.99	9.44	8.67	8.83	9.22

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,601,600K ÷ $726,600K
= 7.71

Hubbell Inc's fixed asset turnover ratio has exhibited some fluctuations over the reported periods, ranging from a low of 7.71 to a high of 10.08. The fixed asset turnover ratio indicates the company's efficiency in generating revenue from its investment in fixed assets. A higher ratio generally suggests better utilization of fixed assets to generate sales.

From March 31, 2020, to December 31, 2024, the fixed asset turnover ratio generally showed a positive trend, with some fluctuations. The ratio peaked in June 30, 2022, at 10.08 and remained relatively high until September 30, 2022. This indicates that the company efficiently utilized its fixed assets to generate sales during this period.

However, the ratio declined in subsequent periods, reaching a low of 7.71 by December 31, 2024. This decrease could be a cause for concern as it may imply a decline in efficiency in generating revenue from fixed assets.

Overall, Hubbell Inc's fixed asset turnover ratio fluctuated over the period under review, showing both positive and negative trends. Further analysis of the company's operational efficiency and capital investments may help in determining the reasons behind these fluctuations and potential areas for improvement.