Hubbell Inc (HUBB)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	4,666,300	4,413,300	4,324,800	3,741,400	3,752,500
Payables	US$ in thousands	541,700	563,500	529,900	532,800	339,200
Payables turnover		8.61	7.83	8.16	7.02	11.06

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,666,300K ÷ $541,700K
= 8.61

Hubbell Inc's payables turnover ratio has shown fluctuations over the past five years. The ratio decreased from 11.06 in December 2020 to 7.02 in December 2021, indicating that the company took longer to pay its suppliers in 2021 compared to 2020. However, there was a moderate improvement in 2022, with the ratio increasing to 8.16, suggesting a faster turnover of payables. In 2023 and 2024, the payables turnover ratio slightly decreased to 7.83 and then increased to 8.61, respectively.

Overall, the trend in Hubbell Inc's payables turnover ratio suggests some variability in the company's ability to manage its accounts payable efficiently. Further analysis is needed to understand the underlying reasons for these fluctuations and assess the impact on the company's working capital management and relationships with suppliers.