Hubbell (Hubbell) Interest Coverage : 22.56 (As of Dec. 2023)

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What is Hubbell Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Hubbell's Operating Income for the three months ended in Dec. 2023 was $226 Mil. Hubbell's Interest Expense for the three months ended in Dec. 2023 was $-10 Mil. Hubbell's interest coverage for the quarter that ended in Dec. 2023 was 22.56. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hubbell's Interest Coverage or its related term are showing as below:

HUBB' s Interest Coverage Range Over the Past 10 Years
Min: 7.68 Med: 11.42 Max: 28.3
Current: 28.3

HUBB's Interest Coverage is ranked better than
65.32% of 2304 companies
in the Industrial Products industry
Industry Median: 13.775 vs HUBB: 28.30

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hubbell Interest Coverage Historical Data

The historical data trend for Hubbell's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Hubbell Interest Coverage Chart

Hubbell Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

7.68

8.23

9.73

14.16

28.30

Hubbell Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															14.10	25.65	31.28	35.42	22.56

Competitive Comparison of Hubbell's Interest Coverage

For the Electrical Equipment & Parts subindustry, Hubbell's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hubbell's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hubbell's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hubbell's Interest Coverage falls into.

Hubbell Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hubbell's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Hubbell's Interest Expense was $-37 Mil. Its Operating Income was $1,039 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,142 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1038.5	/	-36.7
	=	28.30

Hubbell's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Hubbell's Interest Expense was $-10 Mil. Its Operating Income was $226 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,142 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	225.6	/	-10
	=	22.56

The higher the ratio, the stronger the company's Financial Strength is.

Hubbell (NYSE:HUBB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Hubbell Interest Coverage Related Terms

Thank you for viewing the detailed overview of Hubbell's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Hubbell (Hubbell) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hubbell Inc (NYSE:HUBB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HUEC:Germany

Address

40 Waterview Drive, Shelton, CT, USA, 06484

Website

https://www.hubbell.com

Hubbell is a diversified conglomerate industrial company that mostly competes in the electrical components market. Its products and services serve vital portions of the U.S. electrical supply chain, including transmission and distribution as well as the commercial, industrial, and residential end markets. The company organizes its business into two segments: electrical and power systems. The consolidated business sells about two thirds of its products via distributors, with the remainder sold via direct sales to utilities and contractors. The 2018 acquisition of Aclara, folded into the utility solutions segment, brought Hubbell a portfolio of smart meters and communication sensors that serves electrical, water, and gas utilities.

Executives

John F Malloy	director	2556 SPRING VALLEY ROAD, BETHLEHEM PA 18105
Del Nero Jonathan M.	officer: Vice President, Controller	C/0 HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Alyssa R Flynn	officer: Chief Human Resources Officer	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
William R Sperry	officer: Executive VP and CFO	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Gerben Bakker	officer: Group Vice President	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Mark Eugene Mikes	officer: President Electrical Solutions	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Gregory Gumbs	officer: President, Utility Solutions	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Debra L. Dial	director	208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Carlos M Cardoso	director	STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Anthony Guzzi	director	301 MERRITT SEVEN, 6TH FLOOR, NORWALK CT 06851
Allan Connolly	officer: Group President, Power Systems	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Stephen M Mais	officer: Vice President Human Resources	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Rhett Anthony Hernandez	director	40 WATERVIEW DRIVE, SHELTON CT 06484
David G Nord	officer: Senior VP & CFO	UNITED TECHNOLOGIES CORP, ONE FINANCIAL PLAZA, HARTFORD CT 06101
Joseph Anthony Capozzoli	officer: VP and Corporate Controller	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484