Hubbell Inc (HUBB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.40% | 30.06% | 27.95% | 26.32% | 25.79% |
| Operating profit margin | 19.47% | 14.49% | 12.92% | 11.99% | 11.59% |
| Pretax margin | 18.32% | 14.02% | 11.84% | 10.69% | 11.05% |
| Net profit margin | 14.25% | 11.15% | 9.70% | 8.51% | 8.82% |
Hubbell Inc.'s profitability ratios have shown an improving trend over the past five years, indicating positive performance in generating profits relative to sales and operating expenses.
The gross profit margin has steadily increased from 27.46% in 2021 to 35.14% in 2023, reflecting efficient cost management and potentially higher pricing power. This means that the company is effectively controlling its production costs and is able to retain a larger portion of revenue as gross profit.
Similarly, the operating profit margin has also shown an upward trend, reaching 19.33% in 2023 from 12.69% in 2021. This suggests that the company has been able to effectively manage its operating expenses in relation to sales, resulting in stronger operating profitability.
The pretax margin has also improved consistently over the years, from 10.95% in 2021 to 18.30% in 2023. This indicates that the company has been successful in managing its interest expenses, taxes, and other non-operating costs, further enhancing its overall profitability.
Lastly, the net profit margin has shown steady growth, reaching 14.11% in 2023 from 9.50% in 2021. This suggests that Hubbell Inc. has been effectively managing not only its operating and interest expenses but also its taxes, resulting in higher net income relative to revenue.
Overall, the improving trend in all profitability ratios indicates that Hubbell Inc. has been successful in enhancing its operational efficiency and financial performance over the years, which is a positive signal for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.02% | 13.13% | 10.08% | 9.72% | 10.74% |
| Return on assets (ROA) | 10.99% | 10.10% | 7.56% | 6.91% | 8.18% |
| Return on total capital | 21.19% | 18.67% | 14.52% | 14.29% | 16.55% |
| Return on equity (ROE) | 26.41% | 23.12% | 17.92% | 16.97% | 20.59% |
Hubbell Inc. has demonstrated consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has shown a positive trend, increasing from 12.17% in 2019 to 15.02% in 2023. This indicates that the company is effectively generating operating income relative to its total assets.
Similarly, the return on assets (ROA) has also been on an upward trajectory, reaching 10.96% in 2023 from 8.15% in 2019. This indicates that the company's overall profitability in relation to its total assets has improved over the years.
The return on total capital has shown significant improvement, increasing from 16.96% in 2019 to 20.70% in 2023. This suggests that the company's ability to generate returns from both debt and equity capital has strengthened.
Lastly, the return on equity (ROE) has exhibited a consistent growth trend, rising from 20.51% in 2019 to 26.35% in 2023. This indicates that the company is generating higher returns for its shareholders compared to the previous years.
Overall, Hubbell Inc. has shown commendable progress in its profitability ratios, reflecting efficient asset utilization, improved overall profitability, and enhanced returns for both debt and equity investors.