Hubbell Inc (HUBB)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,038,500 | 709,100 | 532,300 | 494,500 | 526,700 |
| Total assets | US$ in thousands | 6,914,000 | 5,402,600 | 5,281,500 | 5,085,100 | 4,903,000 |
| Operating ROA | 15.02% | 13.13% | 10.08% | 9.72% | 10.74% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,038,500K ÷ $6,914,000K
= 15.02%
Hubbell Inc.'s operating return on assets (operating ROA) has shown a positive trend over the past five years. The operating ROA increased from 12.17% in 2019 to 15.02% in 2023, indicating an improvement in the company's ability to generate operating profit from its assets. This suggests that the company has been able to increase its operational efficiency and profitability over the years.
The operating ROA for 2023 is higher than the previous four years, indicating that the company has been able to enhance its asset utilization and operational performance in the most recent year. This improvement may be attributed to better cost management, increased revenue generation, or enhanced operational processes.
Overall, Hubbell Inc.'s increasing trend in operating ROA reflects positively on the company's operational effectiveness and efficiency in utilizing its assets to generate profits over the years. It implies that the company is effectively managing its assets to generate higher returns, which is a favorable indicator for stakeholders and investors.
Peer comparison
Dec 31, 2023