Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Hubbell Inc., balance sheet: inventory

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Raw material	302,800)	241,000)	219,500)	217,400)	220,200)
Work-in-process	161,700)	129,400)	108,300)	101,800)	110,300)
Finished goods	463,200)	428,600)	366,800)	403,600)	402,300)
Inventories at FIFO	927,700)	799,000)	694,600)	722,800)	732,800)
Excess of FIFO over LIFO cost basis	(187,000)	(136,900)	(87,300)	(89,800)	(81,800)
Inventories, net	740,700)	662,100)	607,300)	633,000)	651,000)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Inventories, net	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Hubbell Inc. inventories, net increased from 2020 to 2021 and from 2021 to 2022.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Inventories, Net
Inventories, net at LIFO (as reported)	740,700)	662,100)	607,300)	633,000)	651,000)
Add: Inventory LIFO reserve	187,000)	136,900)	87,300)	89,800)	81,800)
Inventories, net at FIFO (adjusted)	927,700)	799,000)	694,600)	722,800)	732,800)
Adjustment to Current Assets
Current assets (as reported)	2,021,400)	1,879,300)	1,587,600)	1,574,200)	1,643,700)
Add: Inventory LIFO reserve	187,000)	136,900)	87,300)	89,800)	81,800)
Current assets (adjusted)	2,208,400)	2,016,200)	1,674,900)	1,664,000)	1,725,500)
Adjustment to Total Assets
Total assets (as reported)	5,402,600)	5,281,500)	5,085,100)	4,903,000)	4,872,100)
Add: Inventory LIFO reserve	187,000)	136,900)	87,300)	89,800)	81,800)
Total assets (adjusted)	5,589,600)	5,418,400)	5,172,400)	4,992,800)	4,953,900)
Adjustment to Total Hubbell Incorporated Shareholders’ Equity
Total Hubbell Incorporated shareholders’ equity (as reported)	2,360,900)	2,229,800)	2,070,000)	1,947,100)	1,780,600)
Add: Inventory LIFO reserve	187,000)	136,900)	87,300)	89,800)	81,800)
Total Hubbell Incorporated shareholders’ equity (adjusted)	2,547,900)	2,366,700)	2,157,300)	2,036,900)	1,862,400)
Adjustment to Net Income Attributable To Hubbell Incorporated
Net income attributable to Hubbell Incorporated (as reported)	545,900)	399,500)	351,200)	400,900)	360,200)
Add: Increase (decrease) in inventory LIFO reserve	50,100)	56,800)	(2,500)	8,000)	20,200)
Net income attributable to Hubbell Incorporated (adjusted)	596,000)	456,300)	348,700)	408,900)	380,400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Hubbell Inc. inventory value on Dec 31, 2022 would be $927,700) (in thousands) if the FIFO inventory method was used instead of LIFO. Hubbell Inc. inventories, valued on a LIFO basis, on Dec 31, 2022 were $740,700). Hubbell Inc. inventories would have been $187,000) higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

Hubbell Inc., Financial Data: Reported vs. Adjusted

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Hubbell Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current Ratio
Reported current ratio (LIFO)	1.86	1.76	1.67	1.86	1.96
Adjusted current ratio (FIFO)	2.03	1.89	1.77	1.97	2.06
Net Profit Margin
Reported net profit margin (LIFO)	11.03%	9.53%	8.39%	8.73%	8.04%
Adjusted net profit margin (FIFO)	12.05%	10.88%	8.33%	8.91%	8.49%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.92	0.79	0.82	0.94	0.92
Adjusted total asset turnover (FIFO)	0.89	0.77	0.81	0.92	0.90
Financial Leverage
Reported financial leverage (LIFO)	2.29	2.37	2.46	2.52	2.74
Adjusted financial leverage (FIFO)	2.19	2.29	2.40	2.45	2.66
Return on Equity (ROE)
Reported ROE (LIFO)	23.12%	17.92%	16.97%	20.59%	20.23%
Adjusted ROE (FIFO)	23.39%	19.28%	16.16%	20.07%	20.43%
Return on Assets (ROA)
Reported ROA (LIFO)	10.10%	7.56%	6.91%	8.18%	7.39%
Adjusted ROA (FIFO)	10.66%	8.42%	6.74%	8.19%	7.68%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Hubbell Inc. adjusted current ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hubbell Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Hubbell Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hubbell Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Current assets	2,021,400)	1,879,300)	1,587,600)	1,574,200)	1,643,700)
Current liabilities	1,088,500)	1,065,200)	948,200)	844,900)	839,300)
Liquidity Ratio
Current ratio¹	1.86	1.76	1.67	1.86	1.96
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	2,208,400)	2,016,200)	1,674,900)	1,664,000)	1,725,500)
Current liabilities	1,088,500)	1,065,200)	948,200)	844,900)	839,300)
Liquidity Ratio
Adjusted current ratio²	2.03	1.89	1.77	1.97	2.06

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 2,021,400 ÷ 1,088,500 = 1.86

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 2,208,400 ÷ 1,088,500 = 2.03

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Hubbell Inc. adjusted current ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated	545,900)	399,500)	351,200)	400,900)	360,200)
Net sales	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)
Profitability Ratio
Net profit margin¹	11.03%	9.53%	8.39%	8.73%	8.04%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated	596,000)	456,300)	348,700)	408,900)	380,400)
Net sales	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)
Profitability Ratio
Adjusted net profit margin²	12.05%	10.88%	8.33%	8.91%	8.49%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × 545,900 ÷ 4,947,900 = 11.03%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × 596,000 ÷ 4,947,900 = 12.05%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hubbell Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)
Total assets	5,402,600)	5,281,500)	5,085,100)	4,903,000)	4,872,100)
Activity Ratio
Total asset turnover¹	0.92	0.79	0.82	0.94	0.92
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Net sales	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)
Adjusted total assets	5,589,600)	5,418,400)	5,172,400)	4,992,800)	4,953,900)
Activity Ratio
Adjusted total asset turnover²	0.89	0.77	0.81	0.92	0.90

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 4,947,900 ÷ 5,402,600 = 0.92

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 4,947,900 ÷ 5,589,600 = 0.89

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	5,402,600)	5,281,500)	5,085,100)	4,903,000)	4,872,100)
Total Hubbell Incorporated shareholders’ equity	2,360,900)	2,229,800)	2,070,000)	1,947,100)	1,780,600)
Solvency Ratio
Financial leverage¹	2.29	2.37	2.46	2.52	2.74
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,589,600)	5,418,400)	5,172,400)	4,992,800)	4,953,900)
Adjusted total Hubbell Incorporated shareholders’ equity	2,547,900)	2,366,700)	2,157,300)	2,036,900)	1,862,400)
Solvency Ratio
Adjusted financial leverage²	2.19	2.29	2.40	2.45	2.66

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Hubbell Incorporated shareholders’ equity
= 5,402,600 ÷ 2,360,900 = 2.29

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 5,589,600 ÷ 2,547,900 = 2.19

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated	545,900)	399,500)	351,200)	400,900)	360,200)
Total Hubbell Incorporated shareholders’ equity	2,360,900)	2,229,800)	2,070,000)	1,947,100)	1,780,600)
Profitability Ratio
ROE¹	23.12%	17.92%	16.97%	20.59%	20.23%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated	596,000)	456,300)	348,700)	408,900)	380,400)
Adjusted total Hubbell Incorporated shareholders’ equity	2,547,900)	2,366,700)	2,157,300)	2,036,900)	1,862,400)
Profitability Ratio
Adjusted ROE²	23.39%	19.28%	16.16%	20.07%	20.43%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Total Hubbell Incorporated shareholders’ equity
= 100 × 545,900 ÷ 2,360,900 = 23.12%

² Adjusted ROE = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 100 × 596,000 ÷ 2,547,900 = 23.39%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Hubbell Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated	545,900)	399,500)	351,200)	400,900)	360,200)
Total assets	5,402,600)	5,281,500)	5,085,100)	4,903,000)	4,872,100)
Profitability Ratio
ROA¹	10.10%	7.56%	6.91%	8.18%	7.39%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated	596,000)	456,300)	348,700)	408,900)	380,400)
Adjusted total assets	5,589,600)	5,418,400)	5,172,400)	4,992,800)	4,953,900)
Profitability Ratio
Adjusted ROA²	10.66%	8.42%	6.74%	8.19%	7.68%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Total assets
= 100 × 545,900 ÷ 5,402,600 = 10.10%

² Adjusted ROA = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Adjusted total assets
= 100 × 596,000 ÷ 5,589,600 = 10.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hubbell Inc. (NYSE:HUBB)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Hubbell Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Hubbell Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)