Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Hubbell Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hubbell Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hubbell Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hubbell Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hubbell Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Hubbell Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Hubbell Inc., gross profit margin 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) | ||||||
| Gross profit | 1,471,600) | 1,151,500) | 1,209,300) | 1,352,700) | 1,300,400) | |
| Net sales | 4,947,900) | 4,194,100) | 4,186,000) | 4,591,000) | 4,481,700) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 29.74% | 27.46% | 28.89% | 29.46% | 29.02% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 5.26% | 4.84% | -9.78% | 5.83% | — | |
| Caterpillar Inc. | 26.91% | 26.30% | 25.47% | 27.83% | — | |
| Eaton Corp. plc | 33.19% | 32.28% | 30.52% | 32.97% | — | |
| GE Aerospace | 24.55% | 24.19% | 17.26% | 23.52% | — | |
| Honeywell International Inc. | 36.99% | 35.85% | 32.07% | 33.70% | — | |
| Lockheed Martin Corp. | 12.56% | 13.52% | 13.23% | 13.99% | — | |
| RTX Corp. | 20.38% | 19.40% | 15.08% | 25.93% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 1,471,600 ÷ 4,947,900 = 29.74%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hubbell Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Operating Profit Margin
Hubbell Inc., operating profit margin 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) | ||||||
| Operating income | 709,100) | 532,300) | 533,000) | 596,600) | 556,900) | |
| Net sales | 4,947,900) | 4,194,100) | 4,186,000) | 4,591,000) | 4,481,700) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 14.33% | 12.69% | 12.73% | 12.99% | 12.43% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -5.33% | -4.66% | -21.95% | -2.58% | — | |
| Caterpillar Inc. | 13.97% | 14.27% | 11.67% | 16.33% | — | |
| Eaton Corp. plc | 14.55% | 15.69% | 11.45% | 13.38% | — | |
| GE Aerospace | 6.05% | 8.58% | 5.49% | 12.84% | — | |
| Honeywell International Inc. | 18.12% | 18.03% | 17.45% | 18.66% | — | |
| Lockheed Martin Corp. | 12.65% | 13.61% | 13.22% | 14.29% | — | |
| RTX Corp. | 8.07% | 7.70% | -3.34% | 11.64% | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 8.29% | 9.11% | 3.00% | 10.93% | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.34% | 9.80% | 4.43% | 9.67% | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 709,100 ÷ 4,947,900 = 14.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hubbell Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Profit Margin
Hubbell Inc., net profit margin 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 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -7.41% | -6.75% | -20.42% | -0.83% | — | |
| Caterpillar Inc. | 11.85% | 13.47% | 7.68% | 12.00% | — | |
| Eaton Corp. plc | 11.86% | 10.92% | 7.90% | 10.34% | — | |
| GE Aerospace | 0.31% | -9.17% | 7.81% | -5.69% | — | |
| Honeywell International Inc. | 14.00% | 16.11% | 14.64% | 16.73% | — | |
| Lockheed Martin Corp. | 8.69% | 9.42% | 10.45% | 10.42% | — | |
| RTX Corp. | 7.75% | 6.00% | -6.22% | 7.19% | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 5.27% | 3.71% | 1.85% | 5.03% | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.27% | 6.43% | 1.43% | 3.90% | — | |
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).
1 2022 Calculation
Net profit margin = 100 × Net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × 545,900 ÷ 4,947,900 = 11.03%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hubbell Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Hubbell Inc., ROE 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 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 42.25% | 39.37% | 19.56% | 41.77% | — | |
| Eaton Corp. plc | 14.45% | 13.06% | 9.44% | 13.75% | — | |
| GE Aerospace | 0.62% | -16.17% | 16.04% | -17.58% | — | |
| Honeywell International Inc. | 29.74% | 29.85% | 27.23% | 33.22% | — | |
| Lockheed Martin Corp. | 61.86% | 57.62% | 113.60% | 199.23% | — | |
| RTX Corp. | 7.16% | 5.29% | -4.88% | 13.25% | — | |
| ROE, Sector | ||||||
| Capital Goods | 13.39% | 8.48% | 4.42% | 18.11% | — | |
| ROE, Industry | ||||||
| Industrials | 15.53% | 16.58% | 3.94% | 13.76% | — | |
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
ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Total Hubbell Incorporated shareholders’ equity
= 100 × 545,900 ÷ 2,360,900 = 23.12%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hubbell Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Hubbell Inc., ROA 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 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -3.60% | -3.03% | -7.80% | -0.48% | — | |
| Caterpillar Inc. | 8.18% | 7.84% | 3.83% | 7.77% | — | |
| Eaton Corp. plc | 7.03% | 6.30% | 4.43% | 6.74% | — | |
| GE Aerospace | 0.12% | -3.28% | 2.25% | -1.87% | — | |
| Honeywell International Inc. | 7.97% | 8.60% | 7.40% | 10.47% | — | |
| Lockheed Martin Corp. | 10.84% | 12.41% | 13.47% | 13.11% | — | |
| RTX Corp. | 3.27% | 2.39% | -2.17% | 3.96% | — | |
| ROA, Sector | ||||||
| Capital Goods | 2.84% | 1.86% | 0.80% | 2.72% | — | |
| ROA, Industry | ||||||
| Industrials | 3.46% | 3.83% | 0.74% | 2.39% | — | |
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
ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Total assets
= 100 × 545,900 ÷ 5,402,600 = 10.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Hubbell Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |