Hubbell Inc (HUBB)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	4,413,300	4,342,200	4,361,000	4,347,400	4,324,800	4,220,300	4,160,900	4,137,000	4,086,800	4,039,100	3,928,200	3,709,700	3,721,700	3,771,000	3,839,800	4,034,700	4,028,200	4,068,300	4,050,300	4,023,200
Inventory	US$ in thousands	832,900	788,400	794,100	779,600	740,700	739,000	719,500	708,800	662,100	700,700	638,300	616,400	526,700	584,900	604,200	595,700	633,000	662,000	661,900	663,000
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,413,300K ÷ $832,900K
= 5.30

To analyze Hubbell Inc.'s inventory turnover, we need to consider the trend over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times its inventory is sold and replaced over a specific period.

Hubbell Inc.'s inventory turnover has been relatively stable over the past two years, ranging from 4.18 to 4.69. A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly, which can signify strong sales and efficient inventory management.

The slight fluctuations in the inventory turnover ratio over the quarters may suggest variations in sales volume, production levels, or inventory management practices. For example, a decrease in the ratio could indicate slower sales or excess inventory on hand, while an increase may suggest improved sales performance or more efficient inventory practices.

Overall, Hubbell Inc.'s inventory turnover ratios above 4 indicate that the company is effectively managing its inventory and efficiently converting it into sales. However, it would be beneficial to delve deeper into the underlying factors influencing these ratios to gain a comprehensive understanding of the company's inventory management effectiveness.