Hubbell Inc (HUBB)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.79	6.11	6.34	6.46	6.60	5.98	6.00	5.91	6.69	5.58	5.71	5.87	7.48	5.91	6.71	6.45	6.68	5.85	5.80	6.32
DSO	days	53.73	59.79	57.57	56.48	55.28	61.00	60.80	61.76	54.55	65.38	63.96	62.17	48.78	61.74	54.41	56.57	54.66	62.43	62.95	57.80

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.79
= 53.73

To analyze Hubbell Inc.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend in the collection efficiency of the company. In the most recent quarter of Q4 2023, the DSO stands at 53.35 days, reflecting an improvement in collecting receivables compared to the prior quarter. Despite this reduction, it is worth noting that the DSO had increased in Q3 2023 and Q2 2023, indicating potential challenges in timely customer payments during those periods.

Comparing the current DSO to the same quarter in the previous year, there has been an overall improvement from Q4 2022, where the DSO was slightly higher at 54.71 days. This suggests a positive development in the company's accounts receivable management efficiency over the year.

Furthermore, observing the longer-term trend, Hubbell Inc. experienced relatively higher DSO levels in Q3 2022 and Q2 2022 at 65.83 days and 65.70 days, respectively. The company managed to reduce the DSO gradually since then, showing efforts to enhance collection procedures and potentially tighten credit policies.

Overall, the varying DSO figures indicate fluctuations in the time it takes for Hubbell Inc. to collect receivables from its customers. While the recent decrease in DSO is a positive sign, continued monitoring of this metric is essential to ensure efficient cash flow management and effective credit control.