Hubbell Inc (HUBB)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,091,600	1,038,500	709,100	532,300	501,300
Interest expense	US$ in thousands	73,800	36,700	49,600	54,700	60,300
Interest coverage		14.79	28.30	14.30	9.73	8.31

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,091,600K ÷ $73,800K
= 14.79

The interest coverage ratio for Hubbell Inc has shown a positive trend over the past five years, rising from 8.31 in December 2020 to 14.79 in December 2024. This indicates that the company's ability to cover its interest expenses with operating income has improved steadily over the period. The significant increase in the ratio from 2020 to 2023, reaching a peak of 28.30, suggests that Hubbell Inc has effectively managed its debt servicing obligations and has generated sufficient earnings to comfortably cover its interest payments. However, the slight decrease in the ratio in 2024 to 14.79 may indicate a change in the company's financial position or operating performance during that year. Overall, the company's interest coverage ratio demonstrates a strong financial position and ability to meet its debt obligations.