Hubbell Inc (HUBB)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-equity ratio		0.44	0.70	0.61	0.64	0.69

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,442,700K ÷ $3,268,300K
= 0.44

The debt-to-equity ratio of Hubbell Inc has shown a downward trend over the past five years, indicating a decreasing reliance on debt financing relative to equity. From 0.69 in December 2020, the ratio decreased to 0.64 in December 2021, further dropping to 0.61 in December 2022. However, there was a slight uptick in the ratio to 0.70 in December 2023 before sharply decreasing to 0.44 in December 2024. This decreasing trend suggests that the company has been effectively managing its debt levels and increasing its equity base, which can enhance financial stability and shareholder confidence.