Hubbell Inc (HUBB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,091,600 | 1,038,500 | 709,100 | 532,300 | 501,300 |
| Long-term debt | US$ in thousands | 1,442,700 | 2,023,200 | 1,437,900 | 1,435,500 | 1,436,900 |
| Total stockholders’ equity | US$ in thousands | 3,268,300 | 2,877,000 | 2,360,900 | 2,229,800 | 2,070,000 |
| Return on total capital | 23.17% | 21.19% | 18.67% | 14.52% | 14.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,091,600K ÷ ($1,442,700K + $3,268,300K)
= 23.17%
Hubbell Inc's return on total capital has shown a positive trend over the years, increasing from 14.29% at the end of December 2020 to 23.17% by December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate profits. The steady improvement in return on total capital reflects positively on the company's operational efficiency and profitability. It suggests that the company's investments and operations have been increasingly successful in generating returns for its capital providers. Overall, the increasing return on total capital demonstrates Hubbell Inc's ability to generate value from its capital investments and operations.
Peer comparison
Dec 31, 2024