Hubbell Inc (HUBB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,038,500 | 709,100 | 532,300 | 501,300 | 571,500 |
| Long-term debt | US$ in thousands | 2,023,200 | 1,437,900 | 1,435,500 | 1,436,900 | 1,506,000 |
| Total stockholders’ equity | US$ in thousands | 2,877,000 | 2,360,900 | 2,229,800 | 2,070,000 | 1,947,100 |
| Return on total capital | 21.19% | 18.67% | 14.52% | 14.29% | 16.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,038,500K ÷ ($2,023,200K + $2,877,000K)
= 21.19%
The return on total capital for Hubbell Inc. has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profits relative to its total capital employed.
In 2023, the return on total capital reached 20.70%, marking a significant increase compared to the previous years. This could suggest that the company has efficiently utilized its total capital to generate higher returns for its stakeholders.
The steady improvement in the return on total capital from 2019 to 2023 reflects positively on Hubbell Inc.'s operational efficiency and profitability. It indicates that the company has been effectively managing its capital resources to generate profitable returns for its investors.
Overall, the increasing trend in the return on total capital for Hubbell Inc. demonstrates the company's ability to generate value from its capital investments and optimize its financial performance over the years.
Peer comparison
Dec 31, 2023