Hubbell Inc (HUBB)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,038,500 | 984,900 | 912,200 | 815,000 | 709,100 | 671,400 | 613,700 | 565,300 | 532,300 | 479,300 | 496,300 | 485,600 | 494,500 | 479,200 | 489,200 | 524,600 | 526,700 | 597,300 | 588,200 | 578,200 |
| Long-term debt | US$ in thousands | 2,023,200 | 1,439,700 | 1,439,100 | 1,438,500 | 1,437,900 | 1,437,300 | 1,436,700 | 1,436,100 | 1,435,500 | 1,434,900 | 1,434,200 | 1,433,700 | 1,436,900 | 1,436,300 | 1,610,400 | 1,597,300 | 1,506,000 | 1,714,100 | 1,722,800 | 1,731,500 |
| Total stockholders’ equity | US$ in thousands | 2,877,000 | 2,739,100 | 2,620,700 | 2,472,700 | 2,360,900 | 2,318,700 | 2,256,900 | 2,213,300 | 2,229,800 | 2,168,800 | 2,125,700 | 2,082,700 | 2,070,000 | 2,016,800 | 1,959,900 | 1,914,900 | 1,947,100 | 1,903,100 | 1,835,900 | 1,808,100 |
| Return on total capital | 21.19% | 23.57% | 22.47% | 20.84% | 18.67% | 17.88% | 16.62% | 15.49% | 14.52% | 13.30% | 13.94% | 13.81% | 14.10% | 13.88% | 13.70% | 14.94% | 15.25% | 16.51% | 16.53% | 16.34% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,038,500K ÷ ($2,023,200K + $2,877,000K)
= 21.19%
To analyze Hubbell Inc.'s return on total capital over the past eight quarters, we can see a positive trend in the company's performance. The return on total capital has been gradually increasing from 15.25% in Q1 2022 to 23.55% in Q3 2023, indicating improving efficiency in generating profits from the total capital employed.
Hubbell Inc.'s return on total capital has consistently exceeded the cost of capital, suggesting that the company is effectively utilizing its resources to generate returns for its investors. This is a positive sign for the company's financial health and indicates a strong ability to generate value from its investments.
Overall, the increasing trend in return on total capital reflects Hubbell Inc.'s improving profitability and operational efficiency over the quarters, which is an encouraging sign for investors and stakeholders.
Peer comparison
Dec 31, 2023