Hubbell Inc (HUBB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.87% | 35.40% | 30.06% | 27.95% | 26.32% |
| Operating profit margin | 19.42% | 19.47% | 14.49% | 12.92% | 11.99% |
| Pretax margin | 17.78% | 18.32% | 14.02% | 11.84% | 10.69% |
| Net profit margin | 13.83% | 14.25% | 11.15% | 9.70% | 8.51% |
Hubbell Inc's profitability has shown a positive trend over the years, as evidenced by the increasing margins.
- The gross profit margin has improved from 26.32% in 2020 to 33.87% in 2024, indicating the company's ability to control production costs and maintain a healthy margin on its products.
- The operating profit margin has also increased steadily, from 11.99% in 2020 to 19.42% in 2024, showing efficient management of operating expenses and improving operational performance.
- Similarly, the pretax margin has shown a consistent growth from 10.69% in 2020 to 17.78% in 2024, indicating effective tax planning and better overall profitability before considering taxes.
- Lastly, the net profit margin has increased from 8.51% in 2020 to 13.83% in 2024, showcasing the company's ability to generate more profit from its revenue after accounting for all expenses and taxes.
Overall, the improving trend in all profitability ratios indicates Hubbell Inc's successful efforts in enhancing its overall profitability and financial performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.34% | 15.02% | 13.13% | 10.08% | 9.72% |
| Return on assets (ROA) | 11.65% | 10.99% | 10.10% | 7.56% | 6.91% |
| Return on total capital | 23.17% | 21.19% | 18.67% | 14.52% | 14.29% |
| Return on equity (ROE) | 23.80% | 26.41% | 23.12% | 17.92% | 16.97% |
Hubbell Inc's profitability ratios have shown a positive trend over the past five years. The Operating Return on Assets (Operating ROA) has steadily increased from 9.72% in 2020 to 16.34% in 2024, indicating the company's ability to generate profits from its operational activities. Similarly, the Return on Assets (ROA) has shown improvement from 6.91% in 2020 to 11.65% in 2024, reflecting Hubbell's efficiency in utilizing its assets to generate earnings.
The Return on Total Capital has also displayed a consistent upward trajectory, rising from 14.29% in 2020 to 23.17% in 2024. This indicates that the company is effectively utilizing both equity and debt to generate returns for its capital providers. Moreover, the Return on Equity (ROE) has shown significant growth, increasing from 16.97% in 2020 to 26.41% in 2023 before slightly declining to 23.80% in 2024. This suggests that Hubbell has been able to generate higher returns for its shareholders over the years.
Overall, the profitability ratios demonstrate Hubbell Inc's strong financial performance and operational efficiency, showcasing its ability to generate profits and maximize returns for both its investors and capital providers.