Hubbell Inc (HUBB)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	759,800	545,900	399,500	351,200	400,900
Total stockholders’ equity	US$ in thousands	2,877,000	2,360,900	2,229,800	2,070,000	1,947,100
ROE		26.41%	23.12%	17.92%	16.97%	20.59%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $759,800K ÷ $2,877,000K
= 26.41%

Hubbell Inc.'s return on equity (ROE) has shown a general increasing trend over the past five years, indicating improvement in the company's profitability and efficiency in generating returns for its shareholders. The ROE increased from 20.51% in 2019 to 26.35% in 2023, reaching its highest point during this period.

The rising trend in ROE suggests that Hubbell Inc. has been effectively utilizing its equity capital to generate profits. This could be attributed to various factors such as increasing sales, cost management, or effective asset utilization. The company's ability to deliver higher returns to shareholders over time indicates strong financial health and management efficiency.

The consistent improvement in ROE reflects positively on Hubbell Inc.'s performance and indicates its capacity to deliver value to its investors. This trend may attract more investors and positively impact the company's stock price and overall market perception. However, it is important for investors to closely monitor future ROE trends to ensure the company sustains its profitability and continues to generate satisfactory returns over the long term.