Hubbell Inc (HUBB)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.24 | 0.28 | 0.28 | 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 |
| Debt-to-capital ratio | 0.31 | 0.34 | 0.38 | 0.39 | 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 |
| Debt-to-equity ratio | 0.44 | 0.51 | 0.62 | 0.65 | 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 |
| Financial leverage ratio | 2.04 | 2.16 | 2.25 | 2.34 | 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 |
Hubbell Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
- Debt-to-assets ratio: This ratio indicates the proportion of the company's assets that are financed by debt. Hubbell Inc's debt-to-assets ratio has been gradually decreasing from 0.32 in March 2020 to 0.22 in December 2024, suggesting a positive trend in managing debt levels relative to total assets.
- Debt-to-capital ratio: This ratio reflects the extent to which debt contributes to the company's capital structure. Hubbell Inc's debt-to-capital ratio has exhibited a decreasing trend from 0.45 in March 2020 to 0.31 in December 2024, indicating a decreasing reliance on debt financing in relation to total capital.
- Debt-to-equity ratio: The debt-to-equity ratio shows the company's reliance on debt compared to equity. Hubbell Inc's debt-to-equity ratio declined from 0.83 in March 2020 to 0.44 in December 2024, indicating a decrease in financial leverage and a stronger equity position relative to debt.
- Financial leverage ratio: This ratio measures the extent to which the company's operations are funded by debt. Hubbell Inc's financial leverage ratio showed a decreasing trend from 2.59 in March 2020 to 2.04 in December 2024, signifying a reduction in financial risk and leverage over the period.
Overall, the downward trends in these solvency ratios suggest Hubbell Inc has been effectively managing its debt levels, reducing financial risk, and strengthening its financial position over the evaluated period.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 14.79 | 15.22 | 17.57 | 21.17 | 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 |
Hubbell Inc's interest coverage ratio has demonstrated a generally improving trend over the past few years, indicating the company's ability to comfortably meet its interest obligations. The ratio has shown a steady increase from 8.01 as of March 31, 2020, reaching a peak of 28.30 as of December 31, 2023. This substantial improvement suggests that the company's earnings before interest and taxes (EBIT) are comfortably covering its interest expenses.
However, it is worth noting a significant drop in the interest coverage ratio from 28.30 as of December 31, 2023, to 21.17 as of March 31, 2024. This decrease may indicate a potential decrease in EBIT relative to interest expenses during that period.
Overall, the upward trend in the interest coverage ratio for Hubbell Inc indicates a positive financial performance and financial health, with the company being better positioned to meet its debt obligations through its operating income. It is important for investors and stakeholders to continue monitoring this ratio to ensure the company's ability to sustain its interest payments.