Hubbell Inc (HUBB)

Payables 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
Payables	US$ in thousands	563,500	554,700	554,800	545,300	529,900	569,900	550,700	548,500	532,800	491,900	465,700	421,300	339,200	387,600	354,400	358,400	347,700	414,700	428,700	403,700
Payables turnover		7.83	7.83	7.86	7.97	8.16	7.41	7.56	7.54	7.67	8.21	8.44	8.81	10.97	9.73	10.83	11.26	11.59	9.81	9.45	9.97

December 31, 2023 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating the number of times a company pays off its average accounts payable balance during a certain period. A higher payables turnover ratio suggests that a company is paying off its suppliers more frequently.

Analyzing Hubbell Inc.'s payables turnover over the past eight quarters reveals a consistent trend of above-average turnover ratios ranging from 5.50 to 6.56. This consistency implies that Hubbell Inc. has been effectively managing its accounts payable by paying off its suppliers promptly.

The slight fluctuations in the payables turnover ratio quarter-over-quarter may be attributable to various factors such as changes in purchase volumes, payment terms negotiation with suppliers, or operational efficiencies in the supply chain management.

Overall, Hubbell Inc.'s above-average payables turnover ratios indicate a strong ability to manage its accounts payable effectively, ensuring timely payments to suppliers. This efficient management reflects positively on the company's liquidity and working capital management.