Hubbell Inc (HUBB)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,038,500	984,900	912,200	815,000	709,100	671,400	613,700	565,300	532,300	479,300	496,300	485,600	494,500	479,200	489,200	524,600	526,700	597,300	588,200	578,200
Interest expense (ttm)	US$ in thousands	36,700	38,400	42,700	46,200	49,600	51,200	52,600	52,600	54,700	55,900	57,400	60,400	60,300	62,000	64,000	65,500	67,900	69,500	70,900	72,500
Interest coverage		28.30	25.65	21.36	17.64	14.30	13.11	11.67	10.75	9.73	8.57	8.65	8.04	8.20	7.73	7.64	8.01	7.76	8.59	8.30	7.98

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,038,500K ÷ $36,700K
= 28.30

Hubbell Inc.'s interest coverage has shown a positive trend over the past eight quarters, indicating the company's improving ability to meet its interest obligations. The interest coverage ratio has increased consistently from 10.60 in Q1 2022 to 28.30 in Q4 2023. This suggests that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses, providing a strong cushion to cover interest payments.

The steady improvement in the interest coverage ratio reflects Hubbell Inc.'s enhanced financial health and reduced risk of default on its interest payments. A higher interest coverage ratio is considered favorable by investors and creditors as it indicates the company's ability to service its debt without undue strain on its financial resources.

Overall, the increasing trend in Hubbell Inc.'s interest coverage ratio signals a positive financial performance and effective management of its debt obligations. It also provides assurance to stakeholders regarding the company's ability to meet its interest payments in a sustainable manner.