Hubbell Inc (HUBB)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,413,300	4,324,800	3,741,400	3,752,500	4,098,400
Payables	US$ in thousands	563,500	529,900	532,800	339,200	347,700
Payables turnover		7.83	8.16	7.02	11.06	11.79

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,413,300K ÷ $563,500K
= 7.83

The payables turnover ratio for Hubbell Inc. has fluctuated over the past five years. The ratio indicates how many times a company pays off its accounts payable balance during a specific period.

The decreasing trend in payables turnover from 2019 to 2021 (9.31 to 5.71) suggests that the company took longer to pay off its accounts payable during those years. This could be due to various reasons such as changes in payment terms with suppliers or inefficiencies in managing working capital.

However, the payables turnover ratio increased in 2022 and 2023, reaching 6.56 and 6.18, respectively. This indicates that the company improved its efficiency in managing accounts payable by paying off suppliers more frequently during these years.

Overall, the fluctuations in the payables turnover ratio for Hubbell Inc. indicate varying levels of effectiveness in managing its accounts payable over the five-year period. It is important for the company to closely monitor this ratio to ensure healthy cash flow management and vendor relationships.