Hubbell Inc (HUBB)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		0.70	0.61	0.64	0.69	0.77

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,023,200K ÷ $2,877,000K
= 0.70

The debt-to-equity ratio of Hubbell Inc. has fluctuated over the past five years as follows:

- In 2019, the ratio was 0.81, indicating that the company had a higher level of debt in relation to its equity.
- In 2020, the ratio increased to 0.77, suggesting a decrease in the reliance on debt compared to equity.
- In 2021, the ratio decreased further to 0.65, signaling a shift towards a more favorable balance between debt and equity.
- In 2022, the ratio decreased again to 0.61, indicating a continued improvement in the financial leverage position of the company.
- In 2023, the ratio increased to 0.74, although it remained below the levels seen in the earlier years.

Overall, the trend in the debt-to-equity ratio of Hubbell Inc. shows fluctuation but generally indicates a decreasing reliance on debt and a strengthening financial position over the period analyzed. It is important to continue monitoring this ratio to assess the company's ability to manage its debt obligations and maintain a healthy balance between debt and equity in the future.