Hubbell Inc (HUBB)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	6,679,100	6,914,000	5,402,600	5,281,500	5,085,100
Total stockholders’ equity	US$ in thousands	3,268,300	2,877,000	2,360,900	2,229,800	2,070,000
Financial leverage ratio		2.04	2.40	2.29	2.37	2.46

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,679,100K ÷ $3,268,300K
= 2.04

The financial leverage ratio for Hubbell Inc has shown a decreasing trend from 2.46 in December 2020 to 2.04 in December 2024. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. Despite the fluctuations over the years, the company's leverage ratio remained above 1, indicating a reliance on debt to finance its operations and growth. The decreasing trend could indicate that the company is decreasing its reliance on debt over time, which can be seen as a positive sign towards a stronger financial position in the long term. It is important to closely monitor this ratio to ensure that the company's capital structure remains sustainable and does not pose excessive risk to its financial health.