Hubbell Inc (HUBB)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.30	5.51	5.49	5.58	5.84	5.71	5.78	5.84	6.17	5.76	6.15	6.02	7.07	6.45	6.36	6.77	6.36	6.15	6.12	6.07
DOH	days	68.88	66.27	66.46	65.45	62.51	63.91	63.12	62.54	59.13	63.32	59.31	60.65	51.66	56.61	57.43	53.89	57.36	59.39	59.65	60.15

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.30
= 68.88

Days of inventory on hand (DOH) is a crucial financial ratio for evaluating a company's efficiency in managing its inventory levels. Hubbell Inc.'s trend in DOH over the past eight quarters reveals some interesting insights.

In Q4 2023, Hubbell Inc. had 87.24 days of inventory on hand, representing an increase from the previous quarter's level of 83.46 days. This suggests that the company was holding inventory for a longer period, which could tie up capital and increase the risk of obsolescence.

Comparing the most recent quarter to the same quarter in the previous year, there has been a notable increase in DOH from 77.77 days in Q4 2022 to 87.24 days in Q4 2023. This indicates a potential buildup of inventory levels, which may result from factors such as slowed demand or production disruptions.

Overall, Hubbell Inc. has experienced a fluctuating trend in its DOH over the past eight quarters, with some quarters showing increases and others decreases. Investors and stakeholders should closely monitor this ratio to assess the company's inventory management effectiveness and potential impact on financial performance.