Hubbell Inc (HUBB)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,904,100	1,888,100	1,471,600	1,151,500	1,085,800
Revenue	US$ in thousands	5,622,200	5,333,700	4,894,800	4,120,400	4,125,400
Gross profit margin		33.87%	35.40%	30.06%	27.95%	26.32%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,904,100K ÷ $5,622,200K
= 33.87%

The gross profit margin of Hubbell Inc has shown a positive trend over the past five years, increasing from 26.32% as of December 31, 2020, to 33.87% as of December 31, 2024. This indicates that Hubbell Inc has been able to improve its efficiency in generating profits from its sales revenue. The company's ability to control its cost of goods sold and maintain a higher proportion of revenue as gross profit has strengthened over the period under consideration. The most significant improvement in the gross profit margin occurred in the year ended December 31, 2023, where the margin reached 35.40%. However, there was a slight dip in the margin in the subsequent year, ending December 31, 2024, to 33.87%. Overall, the increasing trend in the gross profit margin reflects positively on Hubbell Inc's profitability and operational effectiveness.