Stock Analysis on Net

Hubbell Inc. (NYSE:HUBB)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Financial Reporting Quality: Aggregate Accruals 

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Hubbell Inc., balance sheet computation of aggregate accruals

US$ in thousands

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Less: Cash and cash equivalents 440,500 286,200 259,600 182,000 189,000
Less: Short-term investments 14,300 9,400 9,300 14,200 9,200
Operating assets 4,947,800 4,985,900 4,816,200 4,706,800 4,673,900
Operating Liabilities
Total liabilities 3,032,000 3,040,800 2,999,700 2,942,500 3,073,200
Less: Short-term debt and current portion of long-term debt 4,700 9,700 153,100 65,400 56,100
Less: Long-term debt, excluding current portion 1,437,900 1,435,500 1,436,900 1,506,000 1,737,100
Operating liabilities 1,589,400 1,595,600 1,409,700 1,371,100 1,280,000
 
Net operating assets1 3,358,400 3,390,300 3,406,500 3,335,700 3,393,900
Balance-sheet-based aggregate accruals2 (31,900) (16,200) 70,800 (58,200)
Financial Ratio
Balance-sheet-based accruals ratio3 -0.95% -0.48% 2.10% -1.73%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Boeing Co. -12.09% 30.23% 75.78%
Caterpillar Inc. 1.82% 4.22% -1.86%
Eaton Corp. plc 2.87% 10.92% -8.45%
GE Aerospace -7.82% -33.29% -8.79%
Honeywell International Inc. -1.99% 9.04% 2.69%
Lockheed Martin Corp. 15.67% 23.38% 5.01%
RTX Corp. 1.57% 1.48% 18.38%
Balance-Sheet-Based Accruals Ratio, Sector
Capital Goods -0.33% -0.06% 7.00% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Industrials 0.12% 3.77% 5.75% 200.00%

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).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= 4,947,8001,589,400 = 3,358,400

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 3,358,4003,390,300 = -31,900

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -31,900 ÷ [(3,358,400 + 3,390,300) ÷ 2] = -0.95%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Hubbell Inc. deteriorated earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Hubbell Inc., cash flow statement computation of aggregate accruals

US$ in thousands

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Less: Net cash provided by operating activities 636,200 513,700 648,000 591,600 517,100
Less: Net cash (used in) provided by investing activities 18,100 (72,100) (328,800) (128,900) (1,201,400)
Cash-flow-statement-based aggregate accruals (108,400) (42,100) 32,000 (61,800) 1,044,500
Financial Ratio
Cash-flow-statement-based accruals ratio1 -3.21% -1.24% 0.95% -1.84%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Boeing Co. -50.32% -43.09% 172.40%
Caterpillar Inc. 3.26% 5.38% -4.23%
Eaton Corp. plc 4.55% 7.52% -8.43%
GE Aerospace -15.92% -53.22% -20.57%
Honeywell International Inc. -0.79% 2.16% -1.79%
Lockheed Martin Corp. -1.36% -10.24% 4.50%
RTX Corp. 0.87% -1.96% -12.62%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Capital Goods -5.98% -13.86% -1.61% -15.76%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Industrials -4.47% -8.82% -2.05% -11.47%

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).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -108,400 ÷ [(3,358,400 + 3,390,300) ÷ 2] = -3.21%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Hubbell Inc. deteriorated earnings quality from 2021 to 2022.