Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Hubbell Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Hubbell Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Hubbell Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Hubbell Inc. total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Hubbell Inc. equity turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Fixed Asset Turnover
Hubbell Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 4,947,900) | 4,194,100) | 4,186,000) | 4,591,000) | 4,481,700) | |
| Property, plant, and equipment, net | 528,000) | 459,500) | 519,200) | 505,200) | 502,100) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 9.37 | 9.13 | 8.06 | 9.09 | 8.93 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 6.31 | 5.70 | 4.92 | 6.12 | — | |
| Caterpillar Inc. | 4.70 | 3.99 | 3.15 | 3.93 | — | |
| Eaton Corp. plc | 6.59 | 6.41 | 6.02 | 6.12 | — | |
| GE Aerospace | 5.96 | 5.47 | 1.75 | 2.02 | — | |
| Honeywell International Inc. | 6.48 | 6.18 | 5.86 | 6.89 | — | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | 9.07 | — | |
| RTX Corp. | 4.42 | 4.30 | 3.78 | 6.04 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.79 | 5.46 | 3.55 | 4.23 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 3.22 | 3.04 | 2.41 | 2.76 | — | |
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 fixed asset turnover = Net sales ÷ Property, plant, and equipment, net
= 4,947,900 ÷ 528,000 = 9.37
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Hubbell Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Hubbell Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 4,947,900) | 4,194,100) | 4,186,000) | 4,591,000) | 4,481,700) | |
| Property, plant, and equipment, net | 528,000) | 459,500) | 519,200) | 505,200) | 502,100) | |
| Operating lease right-of-use assets | 108,000) | 81,300) | 103,000) | 96,800) | —) | |
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | 636,000) | 540,800) | 622,200) | 602,000) | 502,100) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.78 | 7.76 | 6.73 | 7.63 | 8.93 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.55 | 5.04 | 4.45 | 5.59 | — | |
| Caterpillar Inc. | 4.49 | 3.79 | 3.00 | 3.75 | — | |
| Eaton Corp. plc | 5.58 | 5.60 | 5.26 | 5.44 | — | |
| GE Aerospace | 5.08 | 4.55 | 1.63 | 1.89 | — | |
| Honeywell International Inc. | 5.58 | 5.28 | 5.15 | 6.12 | — | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | 7.88 | — | |
| RTX Corp. | 3.95 | 3.80 | 3.36 | 5.02 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 5.13 | 4.80 | 3.25 | 3.86 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.77 | 2.62 | 2.13 | 2.57 | — | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= 4,947,900 ÷ 636,000 = 7.78
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Hubbell Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Hubbell Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.92 | 0.79 | 0.82 | 0.94 | 0.92 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.49 | 0.45 | 0.38 | 0.57 | — | |
| Caterpillar Inc. | 0.69 | 0.58 | 0.50 | 0.65 | — | |
| Eaton Corp. plc | 0.59 | 0.58 | 0.56 | 0.65 | — | |
| GE Aerospace | 0.39 | 0.36 | 0.29 | 0.33 | — | |
| Honeywell International Inc. | 0.57 | 0.53 | 0.51 | 0.63 | — | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | 1.26 | — | |
| RTX Corp. | 0.42 | 0.40 | 0.35 | 0.55 | — | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.54 | 0.50 | 0.43 | 0.54 | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.66 | 0.60 | 0.51 | 0.61 | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 4,947,900 ÷ 5,402,600 = 0.92
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Hubbell Inc. total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Equity Turnover
Hubbell Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 4,947,900) | 4,194,100) | 4,186,000) | 4,591,000) | 4,481,700) | |
| Total Hubbell Incorporated shareholders’ equity | 2,360,900) | 2,229,800) | 2,070,000) | 1,947,100) | 1,780,600) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.10 | 1.88 | 2.02 | 2.36 | 2.52 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.57 | 2.92 | 2.55 | 3.48 | — | |
| Eaton Corp. plc | 1.22 | 1.20 | 1.20 | 1.33 | — | |
| GE Aerospace | 2.02 | 1.76 | 2.05 | 3.09 | — | |
| Honeywell International Inc. | 2.12 | 1.85 | 1.86 | 1.98 | — | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | 19.13 | — | |
| RTX Corp. | 0.92 | 0.88 | 0.78 | 1.84 | — | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 2.54 | 2.28 | 2.39 | 3.60 | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.94 | 2.58 | 2.75 | 3.53 | — | |
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
Equity turnover = Net sales ÷ Total Hubbell Incorporated shareholders’ equity
= 4,947,900 ÷ 2,360,900 = 2.10
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Hubbell Inc. equity turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |