Hubbell Inc (HUBB)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.41	0.34	0.35	0.37	0.38	0.38	0.39	0.39	0.39	0.40	0.40	0.41	0.41	0.42	0.45	0.45	0.44	0.47	0.48	0.49

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,023,200K ÷ ($2,023,200K + $2,877,000K)
= 0.41

The debt-to-capital ratio of Hubbell Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 0.43, indicating that 43% of the company's capital structure was financed through debt. This represented an increase compared to the previous quarter, where the ratio was 0.35.

The ratio has generally been hovering around the 0.35 to 0.39 range over the past quarters, with slight variations. While a higher debt-to-capital ratio may imply higher financial risk due to increased reliance on debt financing, it can also indicate potential leveraging for growth opportunities.

It is essential for stakeholders to closely monitor changes in this ratio over time to assess the company's financial health and risk profile, as well as to understand its capital structure strategy and overall financial stability.