Hubbell Inc (HUBB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | 0.28 | 0.27 | 0.27 | 0.28 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | 0.31 | 0.34 | 0.34 | 0.35 |
| Debt-to-capital ratio | 0.41 | 0.34 | 0.35 | 0.37 | 0.38 | 0.38 | 0.39 | 0.39 | 0.39 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.45 | 0.45 | 0.44 | 0.47 | 0.48 | 0.49 |
| Debt-to-equity ratio | 0.70 | 0.53 | 0.55 | 0.58 | 0.61 | 0.62 | 0.64 | 0.65 | 0.64 | 0.66 | 0.67 | 0.69 | 0.69 | 0.71 | 0.82 | 0.83 | 0.77 | 0.90 | 0.94 | 0.96 |
| Financial leverage ratio | 2.40 | 2.11 | 2.15 | 2.22 | 2.29 | 2.30 | 2.32 | 2.34 | 2.37 | 2.42 | 2.43 | 2.54 | 2.46 | 2.42 | 2.58 | 2.59 | 2.52 | 2.67 | 2.74 | 2.75 |
The solvency ratios of Hubbell Inc. provide insight into the company's ability to meet its financial obligations and its overall financial stability. Based on the data provided, we observe the following trends:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The decreasing trend in the debt-to-assets ratio from Q4 2022 to Q4 2023 suggests that Hubbell Inc. has been reducing its reliance on debt to finance its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent to which the company's operations are funded by debt. Similar to the debt-to-assets ratio, the decreasing trend in the debt-to-capital ratio indicates that Hubbell Inc. is moving towards a more balanced capital structure with less dependence on debt.
3. Debt-to-equity ratio: This ratio compares the company's total debt to its equity, providing insights into the company's leverage levels. The decreasing trend from Q4 2022 to Q4 2023 suggests that Hubbell Inc. has been effectively managing its debt levels in relation to its equity, which is a positive indicator of financial health.
4. Financial leverage ratio: The financial leverage ratio measures the company's financial leverage and indicates the proportion of assets financed by debt relative to equity. The decreasing trend in this ratio indicates that Hubbell Inc. has been reducing its overall financial risk by decreasing its reliance on debt financing.
Overall, the decreasing trends in the solvency ratios of Hubbell Inc. over the observed period indicate an improving financial position and a prudent approach to managing debt levels. These trends suggest that the company is progressing towards a more sustainable and resilient financial structure, which can enhance its long-term solvency and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Hubbell Inc.'s interest coverage ratio has been consistently improving over the past eight quarters, indicating the company's ability to cover its interest expenses with its operating income. The trend shows a steady increase from 10.60 in Q1 2022 to 28.30 in Q4 2023. This signifies that Hubbell Inc. has significantly enhanced its ability to pay interest expenses through its earnings.
The interest coverage ratio exceeding 1 indicates that the company is generating enough operating income to cover its interest expenses. Hubbell Inc.'s interest coverage ratios well above 1 in all the quarters indicate a strong financial position in terms of its ability to meet its interest obligations. The ratio exceeding 20 in the most recent quarter reflects a substantial improvement and suggests that the company has a robust capacity to service its debt obligations.
Overall, the consistent upward trend in Hubbell Inc.'s interest coverage ratio signals financial stability and strength, indicating a positive outlook for the company's ability to meet its interest payments in the future.