Hubbell Inc (HUBB)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	4,666,300	4,698,500	4,649,000	4,562,700	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
Payables	US$ in thousands	541,700	547,500	586,700	598,500	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
Payables turnover		8.61	8.58	7.92	7.62	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

December 31, 2024 calculation

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

The payables turnover ratio for Hubbell Inc has shown a declining trend over the periods from March 31, 2020, to December 31, 2024. This ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its average accounts payable balance over a specific period.

The payables turnover ratio decreased from 11.26 on March 31, 2020, to 8.61 on December 31, 2024. This decline could be due to various reasons such as changes in payment terms with suppliers, changes in demand for goods and services, or changes in the company's operating cycle.

A lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain its relationships with suppliers if not managed effectively. Conversely, a higher payables turnover ratio may suggest that the company is paying off its suppliers more quickly, which could lead to potential cash flow challenges.

It is important for Hubbell Inc to analyze the reasons behind the decrease in the payables turnover ratio and take appropriate actions to maintain a balance between efficient accounts payable management and maintaining good relationships with suppliers. Monitoring this ratio over time and comparing it to industry benchmarks can help the company assess its performance and make strategic decisions to enhance its financial management.